Mathematics of FinancePYQ May 25Question 4159 of 479
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Madhu invests ₹ 15,000 in a scheme and at the time of maturity the amount became ₹ 25,000. If CAGR for this investment is 8.88%, calculate the approximate number of years for which she has invested the amount.[Given that log(1.667)=0.2219\displaystyle \log(1.667) = 0.2219 and log(1.089)=0.037\displaystyle \log(1.089) = 0.037]

Options

A6 years
B7.7 years
C5.5 years
D7 years
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Correct Answer

Option a6 years

All Options:

  • A6 years
  • B7.7 years
  • C5.5 years
  • D7 years

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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