Mathematics of FinanceMCQMTP Dec 23 Series IIQuestion 1399 of 512
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The simple interest on 600\displaystyle 600 for 9 months is 27\displaystyle 27. Find the interest rate.

Options

A6%\displaystyle 6\%
B12%\displaystyle 12\%
C2.2%\displaystyle 2.2\%
DNone of these
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Correct Answer

Option a6%\displaystyle 6\%

All Options:

  • A6%\displaystyle 6\%
  • B12%\displaystyle 12\%
  • C2.2%\displaystyle 2.2\%
  • DNone of these

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Detailed Solution & Explanation

**Derivation of Interest Rate** Given: - Principal (P\displaystyle P) = Rs. 600\displaystyle \text{Rs. }600 - Simple Interest (SI\displaystyle SI) = Rs. 27\displaystyle \text{Rs. }27 - Time (t\displaystyle t) = 9\displaystyle 9 months = 912=0.75\displaystyle \frac{9}{12} = 0.75 years **Step 1: Set up the Simple Interest formula** SI=P×R×t100SI = \frac{P \times R \times t}{100} 27=600×R×0.7510027 = \frac{600 \times R \times 0.75}{100} 27=6×0.75R27 = 6 \times 0.75 R 27=4.5R27 = 4.5 R **Step 2: Solve for R\displaystyle R** R=274.5=6% per annumR = \frac{27}{4.5} = 6\% \text{ per annum} Hence, **Option A** 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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