Mathematics of FinanceMCQPYQ Sep 24Question 6568 of 108

What is the effective rate of interest when principal amount of $50,000$ deposited in a nationalized bank for one year, corresponding to a nominal rate of interest $6\%$ per annum payable half yearly?

Select Your Answer (Keyboard: A, B, C, D)

For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option D — $6.09\%$

All Options:

A$6.07\%$
B$6.06\%$
C$6.08\%$
D$6.09\%$ ✓

Detailed Solution & Explanation

PYQ Sep 24

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.

Related Comparison Tables

Simple Interest vs Compound Interest: CA Foundation Maths Direct Tax vs Indirect Tax: Core Differences in Public Finance Equity Shares vs Preference Shares: Finance & Law Guide

Ready to Master Mathematics of Finance?

Practice all 108 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free