Mathematics of FinancePYQ Jan 25Question 3960 of 479
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A certain amount is invested in a bank. What annual rate of interest compounded annually makes it 8 times of this investment in 5 years? (Given that 81/5=1.515716\displaystyle 8^{1/5} = 1.515716)

Options

A51.57%
B5.15%
C15.15%
D1.51%
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Correct Answer

Option a51.57%

All Options:

  • A51.57%
  • B5.15%
  • C15.15%
  • D1.51%

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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