CA Foundation - Quantitative Aptitude & Business Economics

Commercial Math, Statistical Dispersion & Economic Analysis question bank (Business Mathematics, Statistics & Economics)

Practice 64 free CA Foundation - Quantitative Aptitude & Business Economics Business Mathematics, Statistics & Economics - Commercial Math, Statistical Dispersion & Economic Analysis questions with answers and step-by-step solutions.

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Q1.

CA Foundation Mathematics of Finance: What is the Effective Rate of Interest corresponding to a nominal interest rate of $8\%$ per annum compounded semi-annually in 'Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund'?

(A)

$8.16\%$ ($r_{eff} = (1 + 0.08/2)^2 - 1 = (1.04)^2 - 1 = 0.0816$) (Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund)

(B)

$8.00\%$

(C)

$8.24\%$

(D)

$8.32\%$

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Q2.

Business Economics (Demand): If the price of a commodity decreases from Rs. 20 to Rs. 16 and quantity demanded increases from 100 units to 140 units in 'Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund', the price elasticity of demand ($E_d$) is:

(A)

$2.0$ ($\frac{\% \Delta Q}{\% \Delta P} = \frac{40/100}{4/20} = \frac{0.40}{0.20} = 2.0$) (Mathematics of Finance: Simple Interest, Compound Interest, Effective Rate, Annuities and Sinking Fund)

(B)

$1.5$

(C)

$1.0$

(D)

$0.5$

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