C.A.

Foundation

TIME VALUE OF MONEY

2024 – SEP
The value of a machine depreciates every year at the rate of 10% per annum, on
its value at the beginning of that year. If the present value of the machine is ₹
72,900 then machine’s worth 3 years ago was:
(A) ₹ 80,000
(B) ₹ 94.710
(C) ₹ 1,00,000
(D) ₹ 75,087

ANS :- c

By Hitesh Parmar
2024 – SEP
What is the effective rate of interest when principal amount of RS. 50,000
deposited in a nationalized bank for one year, corresponding to a nominal rate of
interest 6% per annum payable half yearly?
(A) 6.07%
(B) 6.06%
(C) 6.08%
(D) 6.09%

ANS :- d

By Hitesh Parmar
2024 – SEP
Kanta wants to accumulate ₹ 4,91,300 in her savings account after three years. The
𝟏
rate of interest offered by bank is 6 % per annum compounded annually. How
𝟒
much amount should she invest today to achieve her target amount?
(A) ₹4,37,500
(B) ₹4,09,600
(C) ₹46,900
(D) ₹ 49,600

ANS :- b

By Hitesh Parmar
2024 – SEP
The sum required to earn a monthly simple interest is : interest of ₹ 1,200 at 18%
per annum
(A) ₹60,000
(B) ₹50,000
(C) ₹80,000
(D) ₹66,000

ANS :- c

By Hitesh Parmar
2024 – SEP
The compound interest on 40,000 at 12% per annum compounded quarterly for 6
months is :
(A) ₹2,463
(B) ₹2,643
(C) ₹2,364
(D) ₹2,436

ANS :- d

By Hitesh Parmar
2024 – SEP
At a certain rate of interest per annum, the difference between the compound interest
and simple interest on ₹ 3,00,000 for two years is ₹ 480, then the rate of interest per
annum is:
(A) 4%
(B) 2%
(C) 6%
(D) 8%

ANS :- a

By Hitesh Parmar
2024 – SEP
What is the present value of ₹ 1,000 to be received after two years compounded
annually at 10% interest rate ?
(A) ₹826
(B) ₹800
(C) ₹836
(D) ₹835

ANS :- a

By Hitesh Parmar
2024 – SEP
Mr. X makes a deposit of ₹12,000 in a bank where the amount doubles at compound
interest in 5 years, then what will be the total amount he will have after twenty years?
(A) ₹1,20,000
(B) ₹96,000
(C) ₹1,24,000
(D) ₹1,92,000

ANS :- d

By Hitesh Parmar
2024 – SEP
A roadside tea stall merchant borrows ₹ 9,000 at 2.76% Simple Interest per annum. The
principal and the interest are to be paid in 10 monthly instalments. If each instalment is
double than the preceding one, find the value of the last instalment.
(A) 4,608
(B) 1,024
(C) 9,207
(D) 4,096

ANS :- a

By Hitesh Parmar
 2024 – JUNE
If a loan of Rs. 30,000 is to be paid in 5 annual installment with interest rate of
14% per annum then the equal annual installment will be __________
(Take P(5,0.14) = 3.4330 8100)
A. Rs. 7400
B. Rs. 8100
C. Rs. 8738
D. Rs. 8322

ANS :- C

By Hitesh Parmar
 2024 – JUNE
Assuming that the discount rate is 12% per annum, how much would you pay to get
Rs.100 per year, growing at 4%, annually forever?
A Rs 1,425
B Rs 1,300
C Rs 1,250
D. Rs 1,450

ANS :- C

By Hitesh Parmar
 2024 – JUNE
Find the future value of an annuity of Rs. 5,000 made annually for 6 Years at interest rate
𝟔
of 12% compounded annually, if (1+ 0.12 ) = 1.9738
A. Rs 45,575
B. Rs 40.575
C. Rs 30,465
D. Rs 37.868

ANS :- B

By Hitesh Parmar
 2024 – JUNE
If the interest rate on a loan is 1% per month, the effective annual rate of interest is.
A. 12%
B. 12.36%
C. 12.68%
D. 12.81%

ANS :- C

By Hitesh Parmar
 2024 – JUNE
Ram borrowed Rs. 5.000 at 12.5% per annum compound interest The money was
repaid after 3 years The total interest paid by him approximately is ____________ if
𝟑
(1+ 0.125) = 1.4238
A. Rs. 2,119
B. Rs. 2,200
C. Rs. 2,000
D. Rs. 2,500

ANS :- A

By Hitesh Parmar
 2024 – JUNE
A person invests in a fund that pays 4% per annum for four years. The future value of
𝟒
current Rs. 4,000 would be Rs._____________ (Use if needed,)(1.04) = 1.2698,
𝟏 𝟓 𝟏
𝟏.𝟎𝟒𝟒 = 𝟎. 𝟖𝟓𝟒𝟖, 𝟏. 𝟎𝟒 = 𝟏. 𝟐𝟏𝟔𝟎 𝒂𝒎𝒅
𝟏.𝟎𝟒 𝟓 = 0.8219.)

A. Rs. 3,419
B. Rs. 4,679
C. Rs. 4,866
D. Rs. 3,287

ANS :- B

By Hitesh Parmar
 2024 – JUNE
What is the present value of ₹ 5,000 to be obtained after six years if the interest
𝟏
rate is 5% per annum? (Use the following if needed 𝒏 - = 0.74621. 0.71068,
𝟏.𝟎𝟓
0.67686 and 0.64462 for n = 6, 7, 8, and 9 respectively.)
A. ₹ 3,731
B. ₹ 3,553
C. ₹ 3,384
D. ₹ 3,223

ANS :- A

By Hitesh Parmar
 2024 – JUNE
Find the effective rate of interest of an amount of Rs.40,000 deposited in a bank for
1 year at the rate of 10% compounded semi-annually.
A. 10.20%
B. 10.05%
C. 10.35%
D. 10.10%

ANS :- A

By Hitesh Parmar
 2024 – JUNE
The difference between the compound interest amount and the simple interest
amount for a period of two years, at same interest rate r is_____________.
A. P × 𝒓𝟐
𝒓
B. P ×
𝟐
C. P × 2 × r
D. 𝑷𝟐 × r

ANS :- A

By Hitesh Parmar
 2024 – JUNE
An amount Rs.4,500 becomes Rs. 7,200 in two years at a simple interest rate of :
A. 15%
B. 25%
C. 30%
D. 40%

ANS :- C

By Hitesh Parmar
 2024 – JUNE
You bought a painting 10 years ago as an investment. You originally paid Rs. 85,000 for
it. If you sold it for Rs. 4,84,050. what was your annual return on investment?
A. 47%
B. 4.7%
C. 19%
D. 12.8%

ANS :- C

By Hitesh Parmar
 2024 – JUNE
What is the present value of an investment that pays Rs. 400 at the end of three
years and Rs. 500 at the end of 6 years?
A. Rs. 320
B. Rs. 335
C. Rs. 340
D. Rs. 280

ANS :- A

By Hitesh Parmar
 2024 – JUNE
At 8% compounded annually, how long will it take Rs.750 to double?
A. 6.5 years
B. 48 months
C. 9 years
D. 12 years

ANS :- C

By Hitesh Parmar
 2024 – JUNE
You are considering two investments. Investment A yields 10% compounded
quarterly. Investment B yields r% compounded semi-annually. Both
investments have equal annual yields , Find r.
A. 19.875%
B. 10%
C. 10.38%
D. 10.125%

ANS :- D

By Hitesh Parmar
 2023 – DECEMBER

How much amount is required to be invested every year so as to

accumulate Rs.30,000 at the end of 10 years if the interest compounded
annually at 10%. Given A(10.0.1)= 15.9074
A. Rs.1 882.36
B. Rs. 1828.30
C. Rs. 1832.45
D. Rs. 1853.66

ANS :- a

By Hitesh Parmar
 2023 – DECEMBER

Suppose Mr. X invested Rs.5,000 every year starting from today in

mutual fund for next 10 years. Assuming that average return
compounded annually is at 18% per annum. What is future value?
A. Rs. 1,83,077.68
B. Rs. 1,38,078.85
C. Rs. 1,83,770.53
D. Rs. 1,38,774.50

ANS :- d

By Hitesh Parmar
 2023 – DECEMBER

A person wants to open a shop have two options to acquire a

commercial space either by leasing for 10 years at annual rent of
Rs.2,00,000 or by purchasing the space for Rs.12,00,000. If person can
borrow money at 14% compounded per annum. Which alternate is most
suitable? Given P(10,0.14) = 5.21611
A. A Leasing
B. Purchase
C. Can't say
D. Data insufficient

ANS :- a

By Hitesh Parmar
 2023 – DECEMBER

What is the effective rate of interest when principal amount of

Rs.50,000 deposited in nationalized bank for one year, corresponding to
a nominal rate interest 8% per annum compounded quarterly, given
(1.02)4 = 1.0824
A. 10.38%
B. 8.08%
C. 8.16%
D. 8.24%

ANS :- d

By Hitesh Parmar
 2023 – DECEMBER

Manoj invests Rs.12.000 at 6% per annum simple interest to obtain a

total amount of Rs. 14,880. What is the time for which the amount was
invested?
A. 3 years
B. 4 years
C. 2 years
D. 5 years

ANS :- b

By Hitesh Parmar
 2023 – DECEMBER
1
Mr. X makes a deposit of Rs. 50,000 in the bank for a period of 2 years.
2
If the rate of 1 interest is 12% per annum compounded half yearly, then
the maturity value of the money deposited by Mr. X is:
[Where (1.06)5= 1.33821
A. Rs. 66,910
B. Rs. 66,123
C. Rs. 67,925
D. Rs. 65,550

ANS :- a

By Hitesh Parmar
 2023 – DECEMBER

What will be the future value of an annuity of Rs.2,500 made annually for
12 years at interest rate of 5% compounded annually if (1.05)12 = 1.7958
A. Rs. 37,588.58
B. Rs. 39,790.00
C. Rs. 40,873.13
D. Rs. 42,603.68

ANS :- b

By Hitesh Parmar
 2023 – DECEMBER

If the initial investment of Rs. 4,00,000 becomes RS. 6,00,000 in 24

months, then the Compound Annual Growth Rate (CAGR) is:
A. 30.33%
B. 22.4%
C. 19.46%
D. 14.47%

ANS :- b

By Hitesh Parmar
 2023 – DECEMBER

Mrs. X invests in an annuity immediately that promises annual payments

of Rs. 50,000 for the next 16 years. If the interest rate is 6% compounded
annually then the approximate present value of this annuity is ,
where (1.06)15 = 2.3965.
A. Rs. 5,51,217.75
B. Rs. 5,75,900.00
C. Rs. 5,05,288.08
D. Rs. 5,35,612.45

ANS :- d

By Hitesh Parmar
 2023 – DECEMBER

A machine costing Rs. 1,00,000 has useful life of 10 years. If the rate of
depreciation is 12%, what is scrap value of the machine at the end of life?
Given (0.88)10 = 0.27850
A. Rs. 25,850
B. Rs. 26,850
C. Rs. 27,850
D. Rs. 28,8501

ANS :- c

By Hitesh Parmar
 2023 – DECEMBER
1
Compute the compound interest on Rs. 6.000 for 1 years at 8% per
4
annum Interest will be compounded quarterly
A. 642
B. 630.78
C. 634.68
D. 624.48

ANS :-d

By Hitesh Parmar
 2023 – DECEMBER

The population of a city increases at the rate of 5% every year. What will
be the population of the city in the year 2023, if its population in 2021
was 1,00,000 ?
A. 1,05,500
B. 1,10,250
C. 1,15,240
D. 1,20,550

ANS :- b

By Hitesh Parmar
 2023 – DECEMBER

Mr. XYZ invested Rs.60,000 in a nationalized bank in the form of fixed

deposit at the rate of 7.5% per annum simple interest rate. He received
Rs. 73,500 after the end of the term of fixed deposit. Calculate the period
for which Rs. 60,000 was invested in fixed deposit.
A. 3 Years
B. 3.5 Years
C. 4 Years
D. 4.5 Years

ANS :- a

By Hitesh Parmar
 2023 – DECEMBER

Calculate the present value of Rs. 2,000 to be required after 10 years

Compounded annually at 5% per annum given (1.05)10 = 1.62889
A 1,227.82
B. 1,282.48
C. 1,328.35
D. 1,822.65

ANS :- a

By Hitesh Parmar
 2023 – JUNE

Suppose you have decided to make a Systematic Investment Plan (SIP)

in a mutual fund with Rs. 1,00,000 every year from today for next 10
years where you get return at the rate of 10% per annum compounded
annually. What is the future value of this annuity? Given 1.110 2.59374.
A. Rs. 17,35,114
B. Rs.17,53,411
C. Rs.17,35,411
D. Rs.17,53,114

ANS :-d

By Hitesh Parmar
 2023 – JUNE
Ms. Paul invested Rs.1,00,000 in a mutual fund scheme in January 2018.
After one year in January 2019, she got a dividend amounting to Rs.
10,000 for first year, Rs.12,000 for second year, RS.16,000 for third year,
Rs. 18,000 for fourth year and 21,000 for fifth year in January 2023.
What is Compounded Annual Growth Rate (CAGR) of dividend return?
Given 1.203824 = 2.1
A. 20.38%
B. 18.59%
C. 16.36%
D. 15.89%

ANS :- a

By Hitesh Parmar
 2023 – JUNE

Mr. Ram invested a total of Rs. 1,00,000 in two different banks for a fixed
period. The first bank yields an interest of 9% per annum and second,
11% per annum. If the total interest at the end of one year is 9.75% per
annum, then the amount invested in these banks are respectively:
A. Rs. 52,500, RS. 47,500
B. Rs. 62,500, RS. 37,500
C. Rs. 57,500, RS. 42,500
D. Rs. 67,500, RS. 32,500

ANS :- b

By Hitesh Parmar
 2023 – JUNE
A company want to replace its existing tool room machine at the end of
10 years, the expected cost of machine would be RS.10,00,000. If
management of the company creates a sinking fund, how much
provision needs to be made out of revenue each year which can earn at
the rate of 10% compounded annually?
Given A(10,0.10) = 15.937425.
A. Rs.74,625
B. Rs. 72,514
C. Rs. 62,745
D. Rs. 67,245

ANS :-c

By Hitesh Parmar
 2023 – JUNE

The Nominal rate of interest is 10% per annum. The interest is

compounded quarterly. The effective rate of interest per annum will be:
A. 10%
B. 10.10%
C. 10.25%
D. 10.38%

ANS :- d

By Hitesh Parmar
 2023 – JUNE

A car is available for Rs.4,98,200 cash payment or RS.60,000 cash down

payment followed by three equal annual instalments. If the rate of
interest charged is 14% per annum compounded yearly, then total
interest charged in the installment plan is (Given P(3,0.14) = 2.32163):
A. Rs.1,46,314
B. Rs.1,46,137
C. Rs.1,28,040
D. Rs.1,58,040

ANS :- c

By Hitesh Parmar
 2023 – JUNE

The difference between compound interest and simple interest on a

certain sum of money invested for 3 years at 6% per annum is RS.110.16.
The principle is
A. Rs.3,000
B. Rs.3,700
C. Rs.12,000
D. Rs.10,000

ANS :- d

By Hitesh Parmar
 2023 – JUNE

A machine depreciates at 10% of its value at the beginning of a year. The

cost and scrap value realized at the time of sale being Rs.23.240 and
Rs.9,000 respectively. Approximately, for how many years the machine
is put to use?
A. 7
B. 8
C. 9
D. 10

ANS :- c

By Hitesh Parmar
 2023 – JUNE

The population of a town increases every year by 2% of the population at

the beginning of that year. The approximate number of years, by which
the total increase of population will be 40% IS ……………
(Given 1.028 1.17166)
A. 15
B. 17
C. 19
D. 20

ANS :- b

By Hitesh Parmar
 2023 – JUNE

Govinda's mother decides to gift him Rs.50,000 every year starting from
today for the next five years. Govinda deposits this amount in a bank as
and when he receives and gets 10% per annum interest rate,
compounded annually. What is the present value of this annuity? Given
P(4,0.10) = 3.16987.
A. Rs.2,80,493.5
B. Rs.2,08,493.5
C. Rs.2,08,943.5
D. Rs.2,58,493.5

ANS :- b

By Hitesh Parmar
 2023 – JUNE

The compound interest on Rs.15,625 for 9 months at 16% per annum

compounded quarterly is:
A. Rs.1,851
B. Rs.1,941
C. Rs.1,951
D. Rs.1,961

ANS :- c

By Hitesh Parmar
 2023 – JUNE

If the discount rate is 10% per annum, how much amount would you pay
to receive Rs.2,500 growing at 8%, annually forever?
A. Rs. 1,25,000
B. Rs. 2,50,000
C. Rs. 1,50,000
D. Rs. 2,00,000

ANS :- a

By Hitesh Parmar
 2023 – JUNE

Mr. Sharad got his retirement benefits amounting to Rs.50,00,000. He

want to receive a fixed monthly sum of amount rest of life, starting after
for his one month and thereafter he want to pass on the same to future
generation. He expects to earn an interest of 9% compounded annually.
Determine how much perpetuity amount he will receive every month?
A. Rs. 39,500
B. Rs. 38,500
C. Rs. 37,500
D. Rs. 36,600

ANS :- c

By Hitesh Parmar
 2023 – JUNE

Jonny wants to have Rs. 2,00,000 in his saving account after three year.
The rate of interest offered by bank is 8% per annum compounded
annually. How much should he invest today to achieve his target
amount?
A. Rs. 1,47,489.10
B. Rs. 1,58,766.44
C. Rs. 1,71,035.59
D. Rs. 1,84,417.96

ANS :- b

By Hitesh Parmar
 2022 - DECEMBER

A machine worth Rs. 4,90,740 is depreciated at 15% on its opening value

each year. When its value would reduce to Rs. 2,00,750?
(a) 5 years 5 months
(b) 5 years 6 months
(c) 5 years 7 months
(d) 5 years 8 months

ANS :- b

By Hitesh Parmar
 2022 - DECEMBER

If Rs. 64 Amount to Rs. 83.20 in 2 years, what will Rs. 86 Amount to in 4

years at the same Rate percent per annum?
(a) Rs. 127.60
(b) Rs. 147.60
(c) Rs. 145.34
(d) Rs. 117.60

ANS :- c

By Hitesh Parmar
 2022 - DECEMBER

A farmer borrowed Rs. 3,600 at the rate of 15% simple interest per Annum.
At the end of 4 years, he cleared this account by paying Rs. 4,000 and a
cow. The cost of the cow is:
(a) Rs. 1,000
(b) Rs. 1,200
(c) Rs. 1,550
(d) Rs. 1,760

ANS :- d

By Hitesh Parmar
 2022 - DECEMBER

How much amount is required to be invested every year so as to

accumulate Rs. 5,00,000 at the end of. 12 years if interest is compounded
annually at 10% {Where A (12,0.1) = 21.384284}
(a) Rs. 23381.65
(b) Rs. 24385.85
(c) Rs. 26381.65
(d) Rs. 28362.75

ANS :- a

By Hitesh Parmar
 2022 - DECEMBER

The effective annual rate of interest corresponding to a normal rate of

6% per annum payable half yearly is:
(a) 6.06%
(b) 6.07%
(c) 6.08%
(d) 6.09%

ANS :- d

By Hitesh Parmar
 2022 - DECEMBER

10 years ago the earning per share (EPS) of ABC Ltd. Was Rs. 5 share. Its
EPS for this year is Rs. 22. Compute at what rate, EPS of the company
grow annually?
(a) 15.97%
(b) 16.77%
(c) 18.64%
(d) 14.79%

ANS :- a

By Hitesh Parmar
 2022 - DECEMBER

Raju invests Rs. 20,000 every year in a deposit scheme starting from
today for next 12 years. Assuming that interest rate on this deposit is 7%
per annum compounded annually. What will be the future value of this
annuity? Given that (1+0.07)12 = 2.25219159.
(a) Rs. 540,526
(b) Rs. 382,813
(c) Rs. 643,483
(d) Rs. 357,769

ANS :- b

By Hitesh Parmar
 2022 - DECEMBER

Mr. A invested Rs. 10,000 every year for next 3 years at the interest rate of
8 percent per annum compounded annually. What is future value of the
annuity?
(a) Rs. 32,644
(b) Rs. 32,464
(c) Rs. 34,264
(d) RS. 36,442

ANS :- b

By Hitesh Parmar
 2022 - DECEMBER

Mr. Prakash invested money in two schemes 'A' and 'B' offering
compound interest at the rate of 8% and 9% per annum respectively. If
the total amount of interest accrued through these two schemes
together in two years was Rs. 4,818.30 and total amount invested was
Rs. 27,000. What was the amount invested in schemes 'A'?
(a) Rs. 12,000
(b) Rs. 12,500
(c) Rs. 13,000
(d) Rs. 13,500

ANS :- a

By Hitesh Parmar
 2022 - DECEMBER

A sum of money invested of compound interest doubles itself in four

years. In how many years it become 32 times of itself at the same rate of
compound interest?
(a) 12 Years
(b) 16 Years
(c) 20 Years
(d) 24 Years

ANS :- c

By Hitesh Parmar
 2022 - DECEMBER

The difference between compound interest and simple interest on an

amount of Rs. 15,000 for 2 years is Rs.96. What is the rate of interest per
Annum?
(a) 9%
(b) 8%
(c) 11%
(d) 10%

ANS :- b

By Hitesh Parmar
 2022 - DECEMBER

Rs . 5,000 is invested every month end in an account paying interest @

12% per annum compounded monthly. What is the future value of this
annuity just after making 11th payment? (Given that (1.01)11 = 1.1156)
(a) Rs. 57,800
(b) Rs. 56,100
(c) Rs. 56,800
(d) Rs. 57,100

ANS :- a

By Hitesh Parmar
 2022 - DECEMBER

A sum of money doubles itself in 4 years at certain compound interest

rate. In how many years this sum will become 8 times at the same
compound interest rate?
(a) 12 Years
(b) 14Years
(c) 16 Years
(d) 18 Years

ANS :- a

By Hitesh Parmar
 2022 - DECEMBER

Sinking fund factor is the reciprocal of :

(a) Present value interest factor of a single cash flow
(b) Present value interest factor of an annuity
(c) Future value interest factor of an annuity
(d) Future value interest factor of a single cash flow.

ANS :- b

By Hitesh Parmar
 2022-JUNE

Rs. 2,500 is paid every year for 10 years to pay off a loan. What is the loan
amount if interest rate be 14% per annum compounded annually?
(a) Rs. 15,841.90
(b) Rs. 13,040.27
(c) Rs. 14,674.21
(d) Rs. 14,010.90

ANS :- b

By Hitesh Parmar
 2022-JUNE

Rs. 200 is invested at the end of each month in an account paying

interest 6% per year compounded monthly. What is the future value of
this annuity after 10th payment?
(a) Rs. 2,044
(b) Rs.12,044
(c) Rs. 2,040
(d) Rs. 12,000

ANS :- a

By Hitesh Parmar
 2022-JUNE

In how much time a sum of amount doubles at simple interest at 12.5%

rate?
(a) 7 year
(b) 8 year
(c) 9 year
(d) 10 year

ANS :- b

By Hitesh Parmar
 2022-JUNE

Anshika took a loan of Rs. 1,00,000 @ 8% for 5 year. What amount will
she pay if she wants to pay the whole amount in five equal installments?
(a) Rs. 25,045.63
(b) Rs. 26,045.68
(c) Rs. 28,045.50
(d) None

ANS :- a

By Hitesh Parmar
 2022-JUNE

Ankit invests Rs. 3,000 at the end of each quarter receiving interest @
7% per annum for 5 years. What amount will be receive at the end of the
period?
(a) Rs. 71,200.20
(b) Rs. 71,104.83
(c) Rs. 73,204.83
(d) None

ANS :- b

By Hitesh Parmar
 2022-JUNE

The effective rate of interest corresponding a nominal rate of 7% p.a

convertile quarterly.
(a) 7%
(b) 7.5%
(c) 5%
(d) 7.18%

ANS :- d

By Hitesh Parmar
 2022-JUNE

Assuming that the discount rate is 7% p.a. How much would you pay to
receive Rs. 200, growing at 5% annually for ever?
(a) Rs. 2,500
(b) Rs. 5,000
(c) Rs. 7,500
(d) Rs. 10,000

ANS :- d

By Hitesh Parmar
 2022-JUNE

A company establishes a sinking fund to provide for the payment Rs.

2,00,000 debt maturity in 20 years contribution to the fund are to be
made at the end of every year. Find amount of each deposit of interest is
10% per annum?
(a) Rs. 3,592.11
(b) Rs. 3,492.11
(c) Rs. 3,392.11
(d) None

ANS :- b

By Hitesh Parmar
 2022-JUNE

The CAGR of a initial value of a investment of Rs. 15,000 and final value of
Rs. 25,000 in 3 years is:
(a) 19%
(b) 18.56%
(c) 17.56%
(d) 17%

ANS :- b

By Hitesh Parmar
 2022-JUNE

ABC Ltd. wants to lease out an asset costing Rs. 3,60,000 for a five year
period. It has a fixed rental of Rs. 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 favorable to the company.
(a) Yes [  P(5, 0.14) = 3.43308]
(b) No
(c) It depends
(d) None of the above

ANS :- a

By Hitesh Parmar
 2021 DECEMBER

Mr. X wants to accumulate Rs. 50,00,000 at the end of 10 years. Then

how much amount is required to be invested every year if interest is
compounded annually at 10%? (Given that P(10,0.10) = 15.9374298)
(a) Rs. 3,13,726.87
(b) Rs. 4,13,726.87
(c) Rs. 3,53,726.87
(d) Rs. 4,53,726.87

ANS :- a

By Hitesh Parmar
 2021 DECEMBER

Rahul invested Rs. 70,000 in a bank at the rate of 6.5% p.a. simple.
interest rate. He received Rs. 85,925 after the end of term. Find out the
period for which sum was invested by Rahul.
(a) 2 years
(b) 3 years
(c) 3.5 years
(d) 2.5 years

ANS :- c

By Hitesh Parmar
 2021 DECEMBER

A company needs Rs. 10,000 in five years to replace as equipment. How

much (in Rs.) should be invested now at an interest rate of 8% p.a. is
order to provide for this equipment?
(a) 6,000
(b) 6,805
(c) 10,000
(d) 11,000

ANS :- b

By Hitesh Parmar
 2021 DECEMBER

R needs money to pay Rs. 5,00,000 in 10 years. He invested a sum in a

scheme at 9% rate of interest compounded half-yearly. How much
amount (in Rs.) he invested?
(1.04620 = 2.41171)
(a) 3,07,321
(b) 2,70,321
(c) 2,07,321
(d) 3,40,321

ANS :- c

By Hitesh Parmar
 2021 DECEMBER

An amount is lent at R% simple interest for R years and the simple

interest amount was one-fourth of the principal amount. Then R is
________________
(a) 5
(b) 6
(c) 5 1/2
(d) 6 1/2

ANS :- a

By Hitesh Parmar
 2021 DECEMBER

A sum of money is put at 20% compound interest rate p.a. At which year
the aggregated amount just exceeds the double of the original sum?
(a) 6
(b) 5
(c) 4
(d) 3

ANS :- c

By Hitesh Parmar
 2021 DECEMBER

The present value of an annuity of Rs. 25,000 to be received after 10

years at 6% per annum compounded annually is Rs -------------.
(1.065 = 1.33823)
(a) Rs. 15,960
(b) Rs. 13,960
(c) Rs. 11,960
(d) Rs. 17,960

ANS :- b

By Hitesh Parmar
 2021 - JULY

If the desired future value after 5 years with 18% interest rate Rs.
1,50,000, then the present value (in Rs.) is (Given that (1.18)5= 2.2877)?
(a) 63,712
(b) 65,568
(c) 53,712
(d) 41,712

ANS :- b

By Hitesh Parmar
 2021 - JULY

The effective rate of return for 24% per annum convertible monthly is
given as:
(a) 24%
(b) 26.82%
(c) 18%
(d) 24.24%

ANS :- b

By Hitesh Parmar
 2021 - JULY

What is the compound interest (in Rs. ) on a sum of Rs. 12,600 for 11/2
years at 20% per annum if the interest is compounded half yearly?
(Nearest to a rupee).
(a) 4,271
(b) 4,171
(c) 4,711
(d) 4,117

ANS :- b

By Hitesh Parmar
 2021 - JULY

If discount rate is 14% per annum, then how much a company has to pay
to receive Rs. 280 growing at 9% annually forever?
(a) Rs. 5,600
(b) Rs. 2,800
(c) Rs. 1,400
(d) Rs. 4,200

ANS :- a

By Hitesh Parmar
 2021 - JULY

If the nominal rate of growth is 17% and inflation is 9% for the five years.
Let P be the Gross Domestic Product (GDP) amount at the present year
then the projected real GDP after 6 years is:
(a) 1.587 P
(b) 1.921 P
(c) 1.403 P
(d) 2.51. P

ANS :- a

By Hitesh Parmar
 2021 - JULY

A sum of Rs. 7,500 amounts to Rs. 9,075 at 10% p.a., interest being
compounded yearly in a certain time. The simple interest (in Rs.) on the
same sum for the same time and the same rate is:
(a) 1,000
(b) 1,250
(c) 1,800
(d) 1,500

ANS :- d

By Hitesh Parmar
 2021 - JULY

A loan of Rs. 1,02,000 is to be paid back in two equal annual instalments.

If the rate of interest is 4% p.a, compounded annually, then the total
interest charged (in Rs.) under this installment plan is:
(a) 6,160
(b) 8,120
(c) 5,980
(d) 7,560

ANS :- a

By Hitesh Parmar
 2021 - JULY

If a person bought a house by paying RS. 45,00,000 down payment and

Rs.80,000 at the end of each year till the perpetuity. Assuming the rate
of interest as 16% the present value of house (in Rs.) is given as:
(a) 47,00,000
(b) 45,00,000
(c) 57,80,000
(d) 50,00,000

ANS :- d

By Hitesh Parmar
 2021 - JULY

Let the operating profit of a manufacturer for five years is given as

Years 1 2 3 4 5 6
Operating profit 90 100 106.4 107.14 120.24 157.34
(in lakh Rs.)
Then the operating profit of compound annual growth rate (CAGR) for
year 6 with respect to year 2 is given that :
(a) 9%
(b) 12%
(c) 11%
(d) 13%

ANS :- b

By Hitesh Parmar
 2021 - JULY

If the cost of capital be 12% per annual, then the net present value (in
nearest Rs.) from the given cash flow is given as:
Years 0 1 2 3
Operating profit (in (100) 60 40 50
thousands RS.)

(a) 31048
(b) 34185
(c) 21048
(d) 24187

ANS :- d

By Hitesh Parmar
 2021 - JULY

A certain sum amounts to Rs. 15,748 in 3 years at simple interest at r%

p.a. The same sum amounts to Rs. 16,510 at (r + 2) % p.a. simple interest in
the same time. What is the value of r?
(a) 10%
(b) 8%
(c) 12%
(d) 6%

ANS :- b

By Hitesh Parmar
 2018 - MAY

Mr. X invest 10,000 every year starting from today for next: 10 years
suppose interest rate is 8% per annual compounded annually. Calculate
future value of the annuity.
(a) 1,56,454.88
(b) 1,56,554.88
(c) 1,44,865.625
(d) None of these

ANS :- a

By Hitesh Parmar
 2018 - MAY

How much amount is required to be invested every year so as to

accumulate Rs. 3,00,000 at the end of 10 years, if interest is compounded
annually at 10%?
(a) Rs. 18,823.65
(b) Rs. 18
(c) Rs. 18,828.65
(d) Rs. 18,882.65

ANS :- a

By Hitesh Parmar
 2018 - MAY

If Rs.1,000 be invested at interest rate of 5% and the interest be added to

the principal every 10 years, than the number of years in which it will
amount to Rs.2,000 is:
𝟐
(a) 16 years
𝟑
𝟏
(b) 6 years
𝟒
(c) 16 years
𝟐
(d) 6 years
𝟑

ANS :- a

By Hitesh Parmar
 2018 - MAY

A person borrows Rs. 5,000 for 2 years at 4% per annual simple interest.
1
1 He immediately lends to another person at 6 % . Per annual for 24
4
years find his gain in the transaction for year:
(a) Rs. 112.50
(b) Rs. 225
(c) Rs. 125
(d) Rs. 107.50

ANS :- b

By Hitesh Parmar
 2018 - MAY

If an amount is kept at S.I. it earns an interest of Rs. 600 in first two years
but when kept at compound interest it earns an interest of Rs. 660 for
the same period, then the rate of interest and principal amount
respectively are:
(a) 20%., Rs. 1,200
(b) 20%, Rs. 1,500
(c) 10%, Rs. 1,200
(d) 10%., Rs. 1,500

ANS :- b

By Hitesh Parmar
 2018 - MAY

The future value of an annuity of Rs. 1,000. made annually for 5 years at
the interest of 14% compounded annually is:
Given (1.14)5 1.92541)
(a) Rs. 5,610
(b) Rs.6,610
(c) Rs.6,160
(d) Rs.5,160

ANS :- b

By Hitesh Parmar
 2018 NOVEMBER

If Rs. 10,000 is invested at 8% per year compounded quarterly, then the

value of the investment after 2 years is:
[given (1+0.02)8 = 1.171659]
(a) Rs. 11,716.59
(b) Rs. 10,716.59
(c) Rs. 117.1659
(d) Rs. None of the above

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

A bank pays 10% rate of interest compounded annually. A sum of Rs.400

is deposited in the bank. The amount at the end of 1 year will be
(a) Rs.440
(b) Rs.439
(c) Rs. 441
(d) Rs. 442

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

A certain money doubles itself in 10 years when deposited on simple

interest. It would triple itself in
(a) 20 years
(b) 15 years
(c) 25 years
(d) 30 years

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

A man deposited Rs. 8,000 in a bank for 3 years at 5% per annum

compound interest, after 3 years he will get
(a) Rs. 8,800
(b) Rs. 9,261
(c) Rs. 9,200
(d) Rs. 9,000

ANS :- b

By Hitesh Parmar
 2018 NOVEMBER

If in two years time a principal of Rs. 100 amounts to Rs. 121 when the
interest at the rate of r % is compounded annually, then the value of r
will be
(a) 10.5
(b) 10%
(c) 15
(d) 14

ANS :- b

By Hitesh Parmar
 2018 NOVEMBER

A certain sum of money Q was deposited for 5 year and 4 months at 4.5%
simple interest and amounted to Rs.248, then the value of Q is
(a) Rs. 200
(b) Rs.210
(c) Rs.220
(d) Rs.240

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

If compound interest on a sum for 2 years at 4% per annum is Rs.102,

then the simple interest on the same sum for the same period at the
same rate will be
(a) Rs. 99
(b) Rs. 101
(c) Rs. 100
(d) Rs. 95

ANS :- c

By Hitesh Parmar
 2018 NOVEMBER

A man invests an amount of Rs. 15,860 in the names of his three sons A, B
and C in such a way that they get the same interest after 2, 3 and 4 years
respectively. If the rate of interest is 5%, then the ratio of amount
invested in the name of A, B and C is:
(a) 6: 4:3
(b) 3:4: 6
(c) 30: 12:5
(d) None of the above

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

If the difference between the compound interest compounded annually

and simple interest on a certain amount at 10% per annum for two years
is Rs. 372, then the principal amount is
(a) Rs. 37,200
(b) Rs. 37,000
(c) Rs. 37,500
(d) None of the above

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

What is the net present value of piece of property which would be

valued at Rs. 2 lakh at the end of 2 years? (Annual rate of increase = 5%)
(a) Rs. 1.81 lakh
(b) Rs. 2.01 lakh
(c) Rs. 2.00 lakh
(d) None of the above

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

The effective rate of interest for one year deposit corresponding to a

nominal 7% rate of interest per annum convertible quarterly is
(a) 7%
(b) 7.5%
(c) 7.4%
(d) 7.18%

ANS :- d

By Hitesh Parmar
 2018 NOVEMBER

How much will Rs. 25,000 amount to in 2 years at compound interest if

the rates for the successive years are 4% and 5% per year
(a) Rs. 27,300
(b) Rs. 27,000
(c) Rs. 27,500
(d) Rs. 27,900

ANS :- a

By Hitesh Parmar
 2018 NOVEMBER

Rs. 8,000/- at 10% per annum interest compounded half yearly will
become at the end of one year
(a) Rs. 8,800
(b) Rs. 8,820
(c) Rs. 8,900
(d) Rs. 9,600

ANS :- b

By Hitesh Parmar
 2018 NOVEMBER

The value of furniture depreciates by 10% a year, it the present value of

the furniture in an office is Rs. 21,870, calculate the value of furniture 3
years ago
(a) Rs. 30,000
(b) Rs. 35,000
(c) Rs. 40,000
(d) Rs. 50,000

ANS :- a

By Hitesh Parmar
 2019 JUNE

The certain sum of money became Rs. 692/- in 2 yrs and Rs. 800/- in 5 yrs
then the principle amount is ----------
(a) Rs. 520
(b) Rs. 620
(c) Rs. 720
(d) Rs. 820

ANS :- b

By Hitesh Parmar
 2019 JUNE

A sum of money amount to Rs. 6,200 in 2 years and Rs.7,400 in 3 years as

per S.I. then the principal is
(a) Rs. 3,000
(b) Rs. 3,500
(c) Rs. 3,800
(d) None

ANS :- c

By Hitesh Parmar
 2019 JUNE

A sum was invested for 3 years as per C.I. and the rate of interest for first
year is 9%, 2nd year is 6% and 3rd year is 3% p.a. respectively. Find the sum
if the amount in three years is Rs. 550?
(a) Rs. 250
(b) Rs. 300
(c) Rs. 462.16
(d) Rs. 350

ANS :- c

By Hitesh Parmar
 2019 JUNE
𝑷𝑻𝑹
P = Rs.5,000 R = 15% T = 41/2 using I = then I will be
𝟏𝟎𝟎
(a) Rs. 3,375
(b) Rs. 3,300
(c) Rs. 3,735
(d) None

ANS :- a
By Hitesh Parmar
 2019 JUNE

The effective rate of interest does not depend upon

(a) Amount of Principal
(b) Amount of Interest
(c) Number of Conversion Periods
(d) None of these

ANS :- a

By Hitesh Parmar
 2019 JUNE

A person wants to lease out a machine costing Rs. 5,00,000 for a 10 year
period. It has fixed a rental of Rs. 51,272 per annum payable annually
starting from the end of first year. Suppose rate of interest is 10% per
annum compounded annually on which money can be invested. To
whom this agreement is favorable?
(a) Favour of Lesser
(b) Favour of Lesser
(c) Not for both
(d) Can't be determined

ANS :- a

By Hitesh Parmar
 2019 JUNE

Let a person invest a fixed sum at the end of each month in an account
paying interest 12% per year compounded monthly. If the future value of
this annuity after the 12th payment is Rs. 55,000 then the amount
invested every month is?
(a) Rs. 4,837
(b) Rs. 4,637
(c) Rs. 4,337
(d) Rs. 3,337

ANS :- c

By Hitesh Parmar
 2019 JUNE

If P i2 = Rs. 96, and R = 8% compounded annually then P =

(a) Rs. 14,000
(b) Rs. 15,000
(c) Rs. 16,000
(d) Rs. 17,000

ANS :- b

By Hitesh Parmar
 2019 JUNE

Determine the present value of perpetuity of Rs. 50,000 per month @

rate of interest 12% p.a. is……..
(a) Rs. 45,00,000
(b) Rs. 50,00,000
(c) Rs. 55,00,000
(d) Rs. 60,00,000

ANS :- b

By Hitesh Parmar
 2019 JUNE

In simple interest if the principal is Rs.2,000 and the rate and time are
the roots of the equation x² - 11x + 30= 0 then simple interest is
(a) Rs. 500
(b) Rs. 600
(c) Rs. 700
(d) Rs. 800

ANS :- b

By Hitesh Parmar
 2019 NOVEMBER

A man invests Rs. 12,000 at 10% p.a. and another sum of money at 20%
p.a. for one year. The total investment earns at 14% p.a. simple interest
the total investment is:
(a) Rs. 8,000
(b) Rs. 20,000
(c) Rs. 14,000
(d) Rs. 16,000

ANS :- b

By Hitesh Parmar
 2019 NOVEMBER

The difference in simple interest of a sum invested of Rs. 1,500 for 3 years
is Rs. 18. The difference in their rates is:
(a) 0.4
(b) 0.6
(c) 0.8
(d) 0.10

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

Find the effective rate of interest on Rs. 10,000 on which interest is

payable half yearly at 5% p.a.
(a) 5.06%
(b) 4%
(c) 0.4%
(d) 3%

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

Find the effective rate of interest at 10% p.a. when interest is payable
quarterly.
(a) 10.38%
(b) 5%
(c) 5.04%
(d) 4%

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

What will be the population after 3 years when present population is

Rs. 25,000 and population increases at the rate of 3% in I year, at 4% in II
year and at 5% in III year?
(a) Rs. 28,119
(b) Rs. 29,118
(c) Rs.27,000
(d) Rs. 30,000

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

The value of scooter is Rs. 10,000 find its value after 7 years if rate of
depreciation is 10% p.a.
(a) Rs. 4,782.96
(b) Rs. 4,278.69
(c) Rs. 42,079
(d) Rs. 42,000

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

SI= 0.125P at 10% p.a. Find time.

(a) 1.25 years
(b) 25 years
(c) 0.25 years
(d) None

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

Scrap value of a machine valued at Rs. 10,00,000, after 10 years within

depreciation at 10% p.a.:
(a) Rs. 3,48,678.44
(b) Rs. 3,84,679.45
(c) Rs. 4,00,000
(d) Rs. 3,00,000

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

The difference between CI and SI for 2 years, is 21. If rate of interest is 5%

find principal
(a) Rs. 8,400
(b) Rs. 4,800
(c) Rs. 8,000
(d) Rs.8,200

ANS :- a

By Hitesh Parmar
 2019 NOVEMBER

Present value of a scooter is Rs. 7,290 if its value decreases every year by
10% then its value before 3 years is equal to:
(a) 10,000
(b) 10,500
(c) 20,000
(d) 20,500

ANS :- a

By Hitesh Parmar