Mathematics of FinanceMCQPYQ Dec 23Question 6635 of 108

Mr. Sharad got his retirement benefits amounting to $50,00,000$. He want to receive a fixed monthly sum of amount for his rest of life, starting after one month and thereafter he want to pass on the same to future generation. He expects to earn an interest of $9\%$ CI Annually. Determine how much perpetual payment he will receive every month?

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

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Correct Answer

✅ Option C — $37,500$

All Options:

A$39,500$
B$38,500$
C$37,500$ ✓
D$36,600$

Detailed Solution & Explanation

PYQ Dec 23

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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