Maths, LR & Stats Charts Quick Referencer by ICAI

Jul 17, 2026

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A quick revision referencer for Foundation Course Paper-3: Business Mathematics, Logical Reasoning and Statistics, focusing on the chapter Time Value of Money. It consolidates subject-wise capsules from “The Chartered Accountant Student” to support exam preparation and conceptual clarity. The material provides worked examples and formulas for simple, compound, effective interest rates; population growth and percentage increase problems; depreciation and reducing-balance effective life; and calculations for compound interest with different compounding frequencies. It also covers annuity applications including future value of investments and annuities due versus immediate, with step-by-step solutions for typical numerical questions.

LanguageEnglish

CategoryExam

FormatPDF

Pages23

Reading Time58 min

AccessFree to download

Referencer for Quick Revision Foundation Course Paper-3: Business Mathematics and Logical Reasoning & Statistics A compendium of subject-wise capsules published in the monthly journal “The Chartered Accountant Student” B o a r d o f S t u d i e s ( A c a d e m i c ) I C A I INDEX | Page
No. | Edition of Students’Journal | Topics | | --- | --- | --- | | 1-3 | May 2020 | Time Value of Money | | 4-5 | October 2019 | Number Series, Coding and Decoding and Odd Man Out | | 6 | November 2019 | Direction Sense Tests | | 7 | December 2019 | Seating Arrangements | | 8 | January 2020 | Blood Relations | | 9 | January 2020 | Syllogism | | 10-14 | September 2020 | Measures of Central Tendency | | 15-21 | December 2020 | Measures of Dispersion | FoUnDAtIon : PAPeR 3 BUsIness MAtHeMAtICs , LoGICAL ReAsonInG AnD stAtIstICs ChAPTER 4 : TImE VALuE OF mONEy At the foundation level with regards to Business Mathematics the topic Time Value of money is very important for students not only to acquire professional knowledge but also for examination point of view. Here in this capsule an attempt is made for solving and understanding the concepts of time value of money with the help of following questions with solutions. Problems on Simple, Compound and Effective rate of interest Simple interest = P.T.I., Where P = Principal, T = Time, I = Rate of Interest 1. A sum of money amount to R 6,200 in 2 years and R 7,400 in 3 years. The principal and rate of interest is Solution: A sum of money in 2 years = P + P.2.I = R 6200 A sum of money in 3 years = P + P.3.I = R 7400 Interest in 1 year = R 1200; Interest in 2 years = R 2400 Amount = R 6200, P= Principal = 6200-2400= R 3800. 2400 = 3800×2× ~~ ~~1~~I~~00~~ ~~, I = rate of interest = 31.58% . 2. A sum of money doubles itself in 10 years. The number of years it would triple itself is Solution: 2P = P + ~~ ~~PTR100~~ ~~ , PP= ~~ ~~PTRTR100~~ ~~ ; T = 10 then R = 10% 3P = P + ~~ ~~PTR100~~ ~~ then 2P = 100 and R= 10% Time (T) = 20 years. Amount =P (1+i)n Compound rate of interest = P(1+i)^n-P= A-P where P = principle i= interest n =conversion period 3. The population of a town increases every year by 2% of the population at the beginning of that year. The number of years by which the total increase of population be 40% is Solution:1.4P = P(1+0.02)n (1.02)n=1.4, n = 17 years (app) Depreciation (A)= P(1-i)n Where, A = Scrap Value, P = Original Cost, I =Depreciated at the rate, n = Number of years 4. A machine is depreciated at the rate of 20% on reducing balance. The original cost of the machine was R 1,00,000 and its ultimate scrap value was R 30,000. The effective life of the machine is Solution: Here A = Scrap Value = 30,000 and P = Original Cost = R 1,00,000 30000 = 100000 (1-0.2)n 3/10 = 0.3 = (0.8)n, n = 5.4 years . 5. The useful life of a machine is estimated to be 10 years and cost R 10,000. Rate of depreciation is 10% p.a. The scrap value at the end of its life is So

Jul 17, 2026

Upload by Skyler