CA Foundation · Quantitative Aptitude · Mathematics of Finance
At 8% per annum compounded annually, the future value of ₹5,000 deposited today is ₹5,832 after n years. What is n?
The period is 2 years. The compounding factor needed is 5,832 / 5,000 = 1.1664, which equals (1.08)^2. So ₹5,000 grows to ₹5,832 in two years at 8% compounded annually.
- A2 yearsCorrect
- B3 years
- C1 year
- D4 years
Explanation
Compute 5,000 × 1.08^n. 1.08^2 = 1.1664, and 5,000 × 1.1664 = 5,832. So n = 2. Three years would give 6,298.56, too high.
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