CA Test Series Chapter 04 Answers

CA Foundation Maths - Test Series
QUESTIONS
Question 1 
Find the rate of interest if the amount owed after 6 months is ₹ 1050 borrowed amount being ₹ 1000.
A 5%
B 10%
C 15%
D None
SOLUTION
Option (2) is correct
CORRECT OPTION YOU CHOOSED YOU GOT
B B 1
MARKS -VE MARKS LEVEL
1 0.25 Medium
SUGGESTED TIME YOUR TIME AVERAGE TIME
108 secs 4 secs 16.9 secs
AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED
59.87 % 10.53 % 29.61 %
Question 2 
Peter invested an amount of 120000 at the rate of 10 p.c.p.a simple interest and another amount at the end of 20 p.c.p.a. simple interest. The total
interest earned at the end of one year on the total amount invested became 14 p.c.p.a. find the total amount invested.
A Rs.20,000
1
By Prof. Virendra Singh Thakur
B Rs.22,000
C Rs.24,000
D Rs.25,000
SOLUTION
(1) is correct.
A Skipped 0
1 0.25 Easy
19.09 % 6.36 % 74.55 %
Question 3 
₹ 8,000 becomes ₹ 10,000 in two years at simple interest. The amount that will become ₹ 6,875 in 3 years at the same rate of interest is :
A ₹ 4,850
B ₹ 5,000
C ₹ 5,500
D ₹ 5,275
SOLUTION
(2) is correct.
2
B Skipped 0
1 0.25 Medium
44.55 % 12.73 % 42.73 %
Question 4 
A person invested in all Rs.2600 at 4%,6% and 8% per annum simple interest, at the end of the year, he got the same interest in all the three cases,
the money invested at 4% is :
A Rs. 200
B Rs.600
C Rs.800
D Rs.1200
SOLUTION
(2) is correct
B Skipped 0
1 0.25 Hard
6.36 % 20.91 % 72.73 %
3
Question 5 
If the sum of money when compounded annually become Rs.1140 in 2 years and Rs.1710 in 3 years at rate of interest
A 30%
B 40%
C 50%
D 60%
SOLUTION
(3) is correct
C Skipped 0
1 0.25 Medium
33.64 % 10.91 % 55.45 %
Question 6 
A certain sum of money amounts to ₹ 6,300 in two years and ₹ 7,875 in three years nine months at simple interest. Find the rate of interest per
annum:
A 20%
B 18%
C 15%
D 10%
SOLUTION
(1) is correct.

4
A Skipped 0
1 0.25 Easy
26.36 % 10.91 % 62.73 %
Question 7 
In simple interest, a certain sum becomes Rs.97,920 in years, and Rs.1,15,200 in 5 years, then the rate of interest is:
A Rs.10%
B Rs.11.2%
C Rs.12%
D Rs.13.6%
SOLUTION
(3) is correct.
C Skipped 0
1 0.25 Easy


5
11.82 % 8.18 % 80 %
Question 8 
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
SOLUTION
(2) is correct.
B Skipped 0
1 0.25 Easy
29.09 % 0.91 % 70 %
Question 9 
if the simple interest on a sum of money at 5% per annum for 3 years is Rs.1200, find the compound interest on the same sum for the same period
at the same rate.
A Rs.1261
B Rs. 1263
C Rs.1275
6
D Rs.1285
SOLUTION
(1) is correct.
A Skipped 0
1 0.25 Medium
40.91 % 3.64 % 55.45 %
Question 10 
A bank offers 5% compound interest calculated on half yearly basis. A customer deposits Rs. 1600 each on 1st January and 1st july of a year. At the
end of the year, the amount he would have gained by way of interest is :
A Rs.120
B Rs.121
C Rs.122
D Rs.123
SOLUTION
(2) is correct.
B Skipped 0
1 0.25 Easy

7
20.91 % 10 % 69.09 %
Question 11 
A man saves Rs.200 at the end of each year and lends the money at 5% compound interest. How much will it become at the end of 3 years?
A Rs.565.25
B Rs.635
C Rs.662.02
D Rs.666.50
SOLUTION
(3) is correct.
C Skipped 0
1 0.25 Medium
19.08 % 18.42 % 62.5 %
Question 12 
The compound interest on a certain sum for 2 years at 10% annum is 525. The simple interest on the same sum for double the time at half the rate
present per annum is:
A Rs.400
B Rs.500
C Rs.600
D Rs.800
8
SOLUTION
(2) is correct.
B Skipped 0
1 0.25 Hard
34.55 % 1.82 % 63.64 %
Question 13 
A sum of money placed at compound interest doubles itself in 5 years. It will amount to eight times itself at the same rate of interest in:
A 7 years
B 15 Years
C 24 years
D 36 years
SOLUTION
(2) is correct
B Skipped 0
1 0.25 Medium
9
31.82 % 7.27 % 60.91 %
Question 14 
if Rs.1,000 be invested at interest rate of 5% and the interest be added to the principle every 10 years, than the number of years in which it will
amount to Rs.2,000 is:
C 16 years
SOLUTION
(a) Is correct.
A Skipped 0
1 0.25 Medium
19.09 % 7.27 % 73.64 %
Question 15 
What principal will amount to ₹ 370 in 6 years at 8% p.a. at simple interest:
A ₹ 210
10
B ₹ 250
C ₹ 310
D ₹ 350
SOLUTION
(2) is correct
B Skipped 0
1 0.25 Easy
45.45 % 2.73 % 51.82 %
Question 16 
If the sum of money when compounded annually become ₹ 1140 in 2 years and ₹ 1710 in 3 years at rate of interest
A 30%
B 40%
C 50%
D 60%
SOLUTION
(3) is correct
Reason- Interest in 3rd yr = Rs. 1710 – Rs.1140
= ₹ 570
Tricks Note : For 3rd yr ; it will be like S.I
r=∴ = = 50%
Tricks II Go by choices.
For (c) A = 1140 + 50% (Calculator)
= Rs. 1710
C Skipped 0
11
1 0.25 Easy
28.18 % 10 % 61.82 %
Question 17 
How much investment is required to yield an Annual income of ₹ 420 at 7% p.a. Simple interest.
A ₹ 6,000
B ₹ 6,420
C ₹ 5,580
D ₹ 5,000
SOLUTION
(1) is correct
A Skipped 0
1 0.25 Easy
47.27 % 1.82 % 50.91 %
Question 18 
If compound interest on a sum for 2 years at 4 % per annum is Rs.102, then the simple interest on the same period at the same rate will be:
A Rs.90
12
B Rs.100
C Rs.101
D Rs.93
SOLUTION
(2) is correct
B Skipped 0
1 0.25 Medium
33.64 % 9.09 % 57.27 %
Question 19 
Determine the compound amount and compound interest on ₹ 1000 at 6% compounded semi-annually for 6 years. Given that (1 + i)n = 1.42576 for i
= 3% and n = 12.
A ₹ 1425.76; ₹ 425.76
B ₹ 1420.76 ; ₹ 420.76
C ₹ 1525.76 ; ₹ 525.76
D None
SOLUTION
(1) is correct.
Reason-Given that P = ₹ 1000; t = 6 years
r = 6 % compounded half -yearly
∴ m = 2 ; i =6200 = 0.03
n = mt = 2 × 6 = 12
∴ A = 1000(1 + 0.03)12 = 1000 × 1.42576
= ₹ 1425.76
C.I = A-P = 1425.76 – 1000 = ₹ 425.76
[Note:- If (1 + i)n value is given in the question then use that given value]
Calculator Trick [If values not given] 
13
Type 6 ÷ 200 + 1 × Then press = button (12 – 1 = 11) time then × 1000 = button; we will get the required result = 71425.76 = Amount. Press -1000 =
button we will get compound interest value.
A Skipped 0
1 0.25 Hard
52.63 % 1.97 % 45.39 %
Question 20 
The difference between the simple and compound interest on a certain sum for 3 year at 5% p.a. is 228.75. The compound interest on the sum for 2
years at 5% p.a. is:
A 3,175
B 3,075
C 3,275
D 2,975
SOLUTION
(2) is Correct
Reason-
P= [for 3 years only]
= Rs.30,000
A = 30000 + 5 % + 5% buttons = Rs. 33075

∴ C.I = A – P = ₹ 33075 – 30000
= Rs. 3,075
B Skipped 0
1 0.25 Easy
27.27 % 6.36 % 66.36 %
14
Question 21 
In what time will ₹ 3,90,625 amount to ₹ 4,56,976 at 8% per annum, when the interest is compounded semi-annually ? [Given: (1.04) = 1.16986]
A 2 years
B 4 years
C 5 years
D 1 years
SOLUTION
(1) is correct
Reason-
A = P(1 + )mt
= (1 + )2t
or 1.16985856 = (1.04)2t
or 1.16966 = (1.04)2t
or (1.04)4 = (1.04)2t
∴ 2t = 4 ∴ t = 2 years
A Skipped 0
1 0.25 Medium
18.18 % 29.09 % 52.73 %
Question 22 
How long will ₹ 12,000 take to amount to ₹ 14,000 at 5% p.a. converted quarterly? [Given: (1.0125)124 = 1.1666]
A 3 years
B 3.1 years
C 13.5 years
D 12.4 years.
SOLUTION
(b) is correct
Reason-
= (1 + )4t
or = (1.0125)4t
15
or (1.0125)12.4 = (1.0125)4t
[Note Always use values given in question]
or 4t= 12.4 ∴ t = 3.1yrs.
B Skipped 0
1 0.25 Easy
19.09 % 21.82 % 59.09 %
Question 23 
Anshul’s father wishes to have ₹ 75,000 in a bank account when his first college expenses begin. How much amount his father should
depositnowat6.5%compounded annually if Anshul is to start college in 8 years hence from now?
A ₹ 45,320
B ₹ 46,360
C ₹ 55,360
D ₹ 48,360.
SOLUTION
(1) is correct
A Skipped 0
1 0.25 Easy
20 % 5.45 % 74.55 %
16
Question 24 
The difference between compound interest and simple interest on a certain sum for 2 years @ 10% p.a. is ₹ 10. Find the sum:
A ₹ 1,010
B ₹ 1,095
C ₹ 1,000
D ₹ 990
SOLUTION
(3) is correct
Reason-
P=
P= = Rs.1000
(3) is correct
Calculator Tricks For 2 years. P = 10 ÷ 10% ÷ 10% button = ₹ 1000.
C Skipped 0
1 0.25 Medium
41.82 % 4.55 % 53.64 %
Question 25 
A machine worth ₹ 4,90,740 is depreciated at 15% on its opening value each year. When its value would reduce to ₹ 2,00,000 :
A 5 years 6 months
B 5 years 7 months
C 5 years 5 months
D None
SOLUTION
(1) is correct
17
A Skipped 0
1 0.25 Easy
21.82 % 17.27 % 60.91 %
Question 26 
Asum amount to ₹ 1331 at a principal of ₹ 1,000 at 10 % compounded annually. Find the time.
A 3.31 years
B 4 years
C 3 years
D 2 years
SOLUTION
(3) is correct
Reason: A = 1000 (1+10100 )3 = Rs.1331

So; t = 3 yrs.
Calculator Tricks: GBC
(3) A = 1000 + 10% + 10% + 10% button = ₹ 1,331
C Skipped 0
1 0.25 Easy
18
40 % 2.73 % 57.27 %
Question 27 
In how many years, a sum of ₹ 1000 compounded annually @10% will amount to 1331?
A 6 years
B 5 years
C 4 years
D 3 years
SOLUTION
(4) is correct
Reason: A = 1000 (1+10100 )3 = Rs.1331
So; t = 3 yrs.
D Skipped 0
1 0.25 Easy
42.73 % 0.91 % 56.36 %
Question 28 
Mr. X invests ‘P’ amount at Simple Interest rate 10% and Mr. Y invests ‘Q’ amount at Compound Interest rate 5% compounded annually. At the end
of two years both get the same amount of interest, then the relation between two amounts P and Q is given by:
19
SOLUTION
(1) is correct
A Skipped 0
1 0.25 Medium
12.5 % 10.53 % 76.97 %
Question 29 
The difference between Cl and SI on a certain sum of money for 2 years at 4% per annum is ?The sum is:
A 625
B 630
C 640
D 635
SOLUTION
(1) is correct
Reason: For 2 yrs
Sum of Money =
= ₹ 625
Calculator Tricks:- P = 1 ÷ 4% = 4% button = ₹ 625.
20
A Skipped 0
1 0.25 Medium
17.27 % 3.64 % 79.09 %
Question 30 
The difference between simple interest on a certain time sum at the rate of 10% per annum for 2 years and compound interest which is compounded
every 6 months is Rs.124.05. What is the principal sum?
A Rs.6,000
B Rs.8,000
C Rs.10,000
D Rs.12,000
SOLUTION
(2) Rs.8,000 is correct

Reason- Let the sum be Rs.P. then
P = 124.05
P = 124.05
P =
P =
P = 8,000
B Skipped 0
1 0.25 Hard
19.08 % 10.53 % 70.39 %
Question 31 
21
The difference between and C.I & S.I at 7% p.a. for 2 years is ₹ 29.4 then principal is:
A ₹ 5,000
B ₹ 5,5000
C ₹ 6,000
D ₹ 6,500
SOLUTION
(3) is correct
Reason: P =
= Rs.6000
Calculator Tricks P = 29.4 ÷ 7% + 1% button = rs. 6000
C Skipped 0
1 0.25 Easy
31.82 % 8.18 % 60 %
Question 32 
Find the future value of an annuity of ₹ 500 is made annually for 7 years at interest rate of 14% compounded annually. [Given that (1.14)7 = 2.5023]
A ₹ 5365.25
B ₹ 5265.25
C ₹ 5465.25
D none
SOLUTION
option (1) is correct
22
A Skipped 0
1 0.25 Medium
34.55 % 3.64 % 61.82 %
Question 33 
₹ 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? Given that (1,005)10=1.0511
A ₹ 2544
B ₹ 2144
C ₹ 2544
D None
SOLUTION
(1) is correct.
Reason: Here A = 200 ; r = 6% compounded monthly
n = 10 = No. of payments.
FV =S=A
200 1200m =Rs.2045.60
Step-1 Type 6 ÷ 1200 + 1 Then push × button then push = button 9 times.
Step-II Type – 1 Then ÷ 6 × 1200
Step-III Then Type × 200 = buttons we get the required amount.
Note: If (1 + i)n value is given in the question then use given value in the question otherwise answer may vary.
A Skipped 0
1 0.25 Hard

23
3.29 % 34.87 % 61.84 %
Question 34 
Mr. X Invests ₹ 10,000 every year starting from today for next 10 years suppose: interest rate is 8% per annum compounded annually. Calculate
future value of the annuity: (Given that (1 + 0.08)10 = 2.15892500]
A ₹ 156454.88
B ₹ 144865.625
C ₹ 156554.88
D None of these
SOLUTION
(1) is correct.
Reason: It is Annuity Due Question
A=FV =R[ 100m – 1]
= 10,000 [ 100 – 1]
= ₹ 1,56,454.88.
A Skipped 0
1 0.25 Medium
17.27 % 13.64 % 69.09 %
Question 35 
The present value of an annuity of ₹ 3,000 for 15 years at 4.5% p.a. C.I. is: [Given that (1.045)15 = 1.935282].
A ₹ 23,809.67
B ₹ 32,218.67
C ₹ 32,908.67
D None of these
24
SOLUTION
(2) is correct.
Reason: PV = R
3000
Tricks = ₹ 32,218.67
B Skipped 0
1 0.25 Easy
25.45 % 7.27 % 67.27 %
Question 36 
A machine can be purchased for ₹ 50,000. Machine will contribute ₹ 12,000 per year for the next five years. Assume borrowing cost is 10% per
annum. Determine whether machine should be purchased or not:
A Should be purchased
B Should not be purchased
C Can’t say about purchase
D none of the above
SOLUTION
(2) is correct.
Reason: PV = R
(b) PV = 12000
= ₹ 45,489.44
But it costs ₹ 50, 000
It should not be purchased
B Skipped 0
1 0.25 Medium
25
23.64 % 6.36 % 70 %
Question 37 
Paul borrowers Rs.20,000 condition to repay it with compound interest at 5% p.a in annual installment of Rs.2,000 each. Find the number of years in
which the debt would be paid off:
A 10 years
B 12 years
C 14 years
D 15 years
SOLUTION
(4) is correct.
Reason: 20,000 =2,000
Or 10 =
Or =1- (1.05)-1
Or 0.5 – 1 = (1.05)-1
Or (1.05)-1 = =2
Or t = = 15 yrs. Approx..
D Skipped 0
1 0.25 Hard
11.82 % 8.18 % 80 %
Question 38 
A company establishes a sinking fund to provide for the payment of ₹ 2,00,000 debt maturing in 20 years. Contributions to the fund are to be made
at the end of every year. Find the amount of each annual deposit if interest is 5% per annum :
A ₹ 6,142
B ₹ 6,049
C ₹ 6,052
D ₹ 6,159
26
SOLUTION
(2) is correct
Reason: A = ₹ 200,000
200,000 = R
Or R =
= ₹ 6049 (Approx)
B Skipped 0
1 0.25 Medium
20.91 % 3.64 % 75.45 %
Question 39 
A person invests Rs.500 at the end of each year with a bank which pays interest at 10% p.a. C.I. annually. The amount standing to his credit one
year after he has made his yearly investment for the 12th time is:
A Rs.11761.36
B Rs.10000
C Rs.12000
D none of these
SOLUTION
(2) is correct.
Reason: The future value of annuity after 12 yrs will be
F.V.= A
= 500
= Rs.10692.14188
they are asking one year after 12th payment interest will be given on Rs. 10692.14188 @10% but no 500 is deposited as year has not ended
Interest on Rs.10692.14188 @ 10% will be added
10692.14188
= RS.11761.36
B Skipped 0
1 0.25 Hard
27
2.73 % 20 % 77.27 %
Question 40 
how long will Rs.12,000 take to amount to Rs.14,000 at 5 % p.a converted quarterly ?
A 3 years
B 3.1 years
C 13.5 years
D 12.4 years
SOLUTION
(2) is correct
B Skipped 0
1 0.25 Medium
12.73 % 12.73 % 74.55 %
28

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CA Foundation Maths - Test Series

Option (2) is correct

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

108 secs 4 secs 16.9 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

59.87 % 10.53 % 29.61 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

90 secs 0 secs 62.68 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

19.09 % 6.36 % 74.55 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

108 secs 0 secs 81.97 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

44.55 % 12.73 % 42.73 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

120 secs 0 secs 92.85 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

6.36 % 20.91 % 72.73 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

108 secs 0 secs 83.18 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

33.64 % 10.91 % 55.45 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

90 secs 0 secs 80.49 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

26.36 % 10.91 % 62.73 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

90 secs 0 secs 61.95 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

108 secs 0 secs 44.77 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

40.91 % 3.64 % 55.45 %

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED

CORRECT OPTION YOU CHOOSED YOU GOT

MARKS -VE MARKS LEVEL

SUGGESTED TIME YOUR TIME AVERAGE TIME

108 secs 0 secs 50.64 secs

AVERAGE CORRECT AVERAGE WRONG AVERAGE SKIPPED