Mathematics of FinanceMCQPYQ June 22Question 6621 of 108

ABC Ltd. Wants to lease out an asset costing $3,60,000$ for a five year period. It has a fixed rental of $1,05,000$, per annum payable annually starting from the end of first year. Suppose rate of interest is $14\%$ per annum compounded annually on which money can be invested by the company. Is this agreement favourable to the company.

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

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Correct Answer

✅ Option A — Yes

All Options:

AYes ✓
BNo
CIt depends
DNone of these

Detailed Solution & Explanation

PYQ June 22

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.

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