Mathematics of FinanceMCQPYQ May 20Question 1301 of 512
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A=5,200,R=5%\displaystyle A = 5,200, R = 5\% p.a., T=6\displaystyle T = 6 years, P\displaystyle P will be

Options

A2,000\displaystyle 2,000
B3,880\displaystyle 3,880
C3,000\displaystyle 3,000
Dnone of these
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Correct Answer

Option dnone of these

All Options:

  • A2,000\displaystyle 2,000
  • B3,880\displaystyle 3,880
  • C3,000\displaystyle 3,000
  • Dnone of these

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Detailed Solution & Explanation

**Derivation of Principal Amount** Given: - Future Value (A\displaystyle A) = Rs. 5,200\displaystyle \text{Rs. }5,200 - Simple Interest Rate (R\displaystyle R) = 5%\displaystyle 5\% per annum - Time (T\displaystyle T) = 6\displaystyle 6 years **Step 1: Set up the Simple Interest Amount formula** A=P(1+R×T100)A = P\left(1 + \frac{R \times T}{100}\right) 5200=P(1+5×6100)5200 = P\left(1 + \frac{5 \times 6}{100}\right) 5200=P(1+0.30)5200 = P(1 + 0.30) 5200=1.30P5200 = 1.30 P **Step 2: Solve for P\displaystyle P** P=52001.30=Rs. 4,000P = \frac{5200}{1.30} = \text{Rs. }4,000 *(Since Rs. 4,000 is not listed in Options A, B, or C, the correct choice is Option D).* Hence, **Option D** is the correct answer.

About This Chapter: Mathematics of Finance

Paper

Paper 3: Quantitative Aptitude

Weightage

12-16 Marks

Key Topics

Simple & Compound Interest, Annuity, Perpetuity

The most important mathematical chapter in the entire syllabus. It covers Simple Interest (SI), Compound Interest (CI), Nominal vs Effective rates, Present and Future Value, Annuities (Ordinary and Due), Sinking Funds, and Perpetuities. The concepts learned here are applied heavily in CA Intermediate and Final.

View Official ICAI Syllabus

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