Correct Answer
✅ Option a — ₹ 60
All Options:
- A₹ 60
- B₹ 1260
- C₹ 1200
- D₹ 80
Detailed Solution & Explanation
1) Calculate Simple Interest ():
2) Calculate Compound Interest () compounded annually:
3) Extra amount Mr. X has to pay:
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 SyllabusExam Strategy Tip
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Key Concepts to Understand
More Questions from Mathematics of Finance
A sum of money invested in compounded interest doubles itself in four years. In how many years it becomes 32 times of itself as the same rate of compound interest?
The simple interest on for 9 months is . Find the interest rate.
Miss Liza lent in such a way that some amount was given to Mr. A at p.a. S.I. and rest amount to was given to B at p.a. S.I., the annual interest from both is . Find the amount lent to Mr. A.
A certain sum of money was put at S.I. for years at a certain rate of S.I. p.a. Had it been put at higher rate, it would have fetched more. Find the sum of money.
Rs. is borrowed at compound interest at the rate of for the 1st year, for the second year and for the 3rd year. Find the amount to be paid after 3 years.
If be invested at interest rate of and the interest be added to the principal every years, then the number in years in which it will amount to is:
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