Mathematics of FinancePYQ May 25Question 4157 of 479
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If you deposit ₹ 4,000 into an account paying 6% annual interest compounded quarterly, how much approximate money will be in the account after 5 years?[Given that (1.015)20=1.34489\displaystyle (1.015)^{20} = 1.34489]

Options

A₹ 3387.42
B₹ 4387.42
C₹ 5387.42
D₹ 6387.42
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Correct Answer

Option c₹ 5387.42

All Options:

  • A₹ 3387.42
  • B₹ 4387.42
  • C₹ 5387.42
  • D₹ 6387.42

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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