Mathematics of FinancePYQ Sept 25Question 4262 of 479
All Questions

You are interested in an investment of ₹ 5,000 in a fund that promises ₹ 50 at the end of each year, forever. What is the annual interest rate on this investment?

Options

A1%
B2%
C1.5%
D2.5%
For any discrepancies in this question, email contact@cadada.in

Correct Answer

Option a1%

All Options:

  • A1%
  • B2%
  • C1.5%
  • D2.5%

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.

More Questions from Mathematics of Finance

Ready to Master Mathematics of Finance?

Practice all 479 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free