Mathematics of FinanceMCQMTP Nov 21Question 1332 of 512
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If a sum triples itself in 15\displaystyle 15 years at simple rate of interest, the rate of interest per annum will

Options

A13%\displaystyle 13\%
B13.3%\displaystyle 13.3\%
C13.5%\displaystyle 13.5\%
D13.0%\displaystyle 13.0\%
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Correct Answer

Option b13.3%\displaystyle 13.3\%

All Options:

  • A13%\displaystyle 13\%
  • B13.3%\displaystyle 13.3\%
  • C13.5%\displaystyle 13.5\%
  • D13.0%\displaystyle 13.0\%

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Detailed Solution & Explanation

**Derivation of Simple Interest Rate** Given: - Time (t\displaystyle t) = 15\displaystyle 15 years - Let the sum be P\displaystyle P. Amount (A\displaystyle A) = 3P\displaystyle 3P **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=AP=3PP=2PSI = A - P = 3P - P = 2P **Step 2: Set up the Simple Interest formula** SI=P×R×t100SI = \frac{P \times R \times t}{100} 2P=P×R×151002P = \frac{P \times R \times 15}{100} 2=15R1002 = \frac{15 R}{100} 15R=200    R=20015=13.33% per annum15 R = 200 \implies R = \frac{200}{15} = 13.33\% \text{ per annum} Hence, **Option B** 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

Exam Strategy Tip

Guaranteed 12-16 marks. Master your calculator! Learn the 'GT' and compound interest M+/M- tricks to solve annuity questions in 10 seconds without writing long formulas.

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