Mathematics of FinanceMCQMTP June 24 Series IIQuestion 1594 of 512
All Questions

In ______ receipts / payments takes place forever.

Options

AAnnuity
BPerpetuity
CAnnuity regular
DAnnuity due
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Correct Answer

Option bPerpetuity

All Options:

  • AAnnuity
  • BPerpetuity
  • CAnnuity regular
  • DAnnuity due

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Detailed Solution & Explanation

A perpetuity is an annuity in which the cash flows (receipts or payments) continue indefinitely (forever). 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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