Mathematics of FinancePYQ Jan 26Question 4253 of 507
All Questions

If ₹ 80,000 grows to ₹ x in 3 years at compound interest compounded annually at 8% rate of interest per annum, then the value of x is:

Options

A₹ 1,00,776.96
B₹ 1,02,985.98
C₹ 1,03,680.64
D₹ 99,850.50
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option a₹ 1,00,776.96

All Options:

  • A₹ 1,00,776.96
  • B₹ 1,02,985.98
  • C₹ 1,03,680.64
  • D₹ 99,850.50

Detailed Solution & Explanation

The compound interest formula is given by: A=P(1+r100)nA = P \left(1 + \frac{r}{100}\right)^n where: - A=x\displaystyle A = x is the accumulated amount - P=₹ 80,000\displaystyle P = \text{₹ } 80,000 is the principal amount - r=8%\displaystyle r = 8\% is the annual interest rate - n=3\displaystyle n = 3 is the number of years
Substituting the given values into the formula: x=80,000(1+8100)3x = 80,000 \left(1 + \frac{8}{100}\right)^3 x=80,000(1.08)3x = 80,000 (1.08)^3
Let us calculate (1.08)3\displaystyle (1.08)^3: (1.08)2=1.1664(1.08)^2 = 1.1664 (1.08)3=1.1664×1.08=1.259712(1.08)^3 = 1.1664 \times 1.08 = 1.259712
Now, calculate the value of x\displaystyle x: x=80,000×1.259712x = 80,000 \times 1.259712 x=1,00,776.96x = 1,00,776.96 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 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.

Key Concepts to Understand

More Questions from Mathematics of Finance

Ready to Master Mathematics of Finance?

Practice all 507 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free