Mathematics of FinanceMCQMTP May 18Question 6580 of 108

A machine worth of $4,90,740 $\displaystyle is depreciated at $15\%$ on its opening value each year. When its value reduces to $2,00,000$.

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

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Correct Answer

✅ Option D — None of these

All Options:

A $\displaystyle 5$ years $\displaystyle 6$ months
B $\displaystyle 6$ years $\displaystyle 7$ months
C $\displaystyle 5$ years $\displaystyle 5$ months
DNone of these ✓

Detailed Solution & Explanation

MTP May 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

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A machine worth of $4,90,740\displaystyle is depreciated at &#36;15\% on its opening value each year. When its value reduces to $2,00,000$.