The simple interest of P% for P years will be P on a sum of:

Option B: $100 P/P$. Solution: MTP Nov 18

The simple interest of P% for P years will be P on a sum of:

The correct answer is Option B: $100 P/P$. MTP Nov 18

Mathematics of FinanceMCQMTP Nov 18Question 6578 of 108

All Questions

The simple interest of $\displaystyle P\%$ for $\displaystyle P$ years will be $\displaystyle P$ on a sum of:

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

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

Correct Answer

✅ Option B — $100 \frac{P}{P}$

All Options:

A $\displaystyle P \frac{P}{100}$
B$100 \frac{P}{P}$ ✓
C $\displaystyle P \left( \frac{P}{100} + 1 \right)$
D $\displaystyle \left( \frac{100}{P} - 1 \right)$

Detailed Solution & Explanation

MTP Nov 18

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

The simple interest of P%\displaystyle P\%P% for P\displaystyle PP years will be P\displaystyle PP on a sum of: