Mathematics of FinancePYQ Jan 26Question 4097 of 479
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Ms. Rina buys a refrigerator worth ₹ 25,000. She pays ₹ 5,000 upfront and agrees to settle the remaining amount through five equal annual installments. The unpaid balance carries an interest of 18% per annum, compounded annually. Calculate the approximate value of each annual installment. Given P(5,0.18)=3.12717\displaystyle P(5, 0.18)=3.12717.

Options

A₹ 6,350
B₹ 6,395
C₹ 6,410
D₹ 4,430
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Correct Answer

Option b₹ 6,395

All Options:

  • A₹ 6,350
  • B₹ 6,395
  • C₹ 6,410
  • D₹ 4,430

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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