Mathematics of FinanceMCQMTP Nov 21Question 1332 of 512
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If a sum triples itself in $15$ years at simple rate of interest, the rate of interest per annum will

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

✅ Option b — $13.3\%$

All Options:

  • A$13\%$
  • B$13.3\%$
  • C$13.5\%$
  • D$13.0\%$

Detailed Solution & Explanation

**Derivation of Simple Interest Rate** Given: - Time (t\displaystyle t) = $15$ years - Let the sum be P\displaystyle P. Amount (A\displaystyle A) = $3P$ **Step 1: Calculate Simple Interest (SI\displaystyle SI)** SI=A−P=3P−P=2PSI = A - P = 3P - P = 2P **Step 2: Set up the Simple Interest formula** SI=P×R×t100SI = P×R×t100\displaystyle \frac{P \times R \times t}{100} 2P=P×R×151002P = P×R×15100\displaystyle \frac{P \times R \times 15}{100} 2=15R1002 = 15R100\displaystyle \frac{15 R}{100} 15R=200  ⟹  R=20015=13.33% per annum15 R = 200 \implies R = 20015=13\displaystyle \frac{200}{15} = 13.33\%  per annum\displaystyle \text{ per annum} Hence, **Option B** is the correct answer.

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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