CA Foundation P3 · Chapter 4 · Question 1 of 10
The simple interest on ₹12,000 at 8% per annum for 2½ years is:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) ₹2,400
Explanation
SI = P x R x T / 100 = 12,000 x 8 x 2.5 / 100 = ₹2,400. ₹1,920 is the interest for 2 years only, ₹14,400 is the amount (principal plus interest), and ₹2,40,000 results from not dividing by 100.
More Mathematics of Finance MCQs
- Q3The effective annual rate of interest corresponding to a nominal rate of 12% per annum compounded quarterly is (to two decimals):
- Q4The difference between compound interest and simple interest on ₹15,000 for 2 years at 6% per annum (compounded annually) is:
- Q5At what rate of simple interest per annum will a sum double itself in 8 years?
- Q6₹5,000 is deposited at the end of each year for 4 years at 10% per annum compounded annually. The amount at the end of 4 years is:
- Q7The present value of an ordinary annuity of ₹10,000 per annum for 3 years at 8% per annum compounded annually is (to the nearest paisa):