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This Study Material has been prepared by the faculty of the Board of Studies. The objective of the
Study Material is to provide teaching material to the students to enable them to obtain knowledge

improvement of the material contained herein, they may write to the Director of Studies.

All care has been taken to provide interpretations and discussions in a manner useful for the students.

Permission of the Institute is essential for reproduction of any portion of this material.

Edition :

Website : www.icai.org

E-mail : bosnoida@icai.in

ISBN No. :

Price (All Modules) :

New Delhi - 110 002, India.

Printed by :
 PREFACE

to synchronize the syllabus with the guidelines prescribed by IAESB (International Accounting

the necessary pre-requisites for becoming a well-rounded, competent and globally competitive
Accounting Professional.

ability of the students using basic mathematical and statistical techniques.

By this, students will be equipped with the knowledge to absorb various concepts of other subjects

cost accounting, management accounting, etc.

covers basic mathematical techniques like ratio, proportion, indices, logarithms, equations and
linear inequalities, Time value of money, permutations and combinations, sequence and series, sets,

statistical techniques and measurement thereof.

computational techniques dealt within each chapter. A reasonably good question bank has been
 SYLLABUS

(a) To develop an understanding of the basic mathematical and statistical tools and their application
in Business, Finance and Economics.

(b) To develop logical reasoning skills and apply the same in simple problem solving.

E variable.

(i) Simple Interest

(iii) Depreciation

(v) Present Value

(vi) Net Present Value

(vii) Future Value

(viii) Perpetuity
i
results.
E
chart.

Deviation.

referred for knowledge purpose only.

⑨ ✓
Mc
 ................................................................................4.40
Additional Question Bank ............................................................................................................4.45

:
5.1 Introduction ......................................................................................................................................5.2
5.2 The Factorial .....................................................................................................................................5.2
5.3 Permutations ....................................................................................................................................5.3
...............................................................................................................................................5.4
.....................................................................................................................5.9
.....................................................................................................5.10
.................................................................................................................................5.15
............................................................................................................................5.21
Additional Question Bank ............................................................................................................5.31

6.1 Sequence............................................................................................................................................6.2
6.2 Series ..................................................................................................................................................6.3
6.3 Arithmetic Progression (A.P.) ........................................................................................................6.3
.........................................................................................................6.9
.............................................................................................................................6.11
Additional Question Bank ............................................................................................................6.20

7.1 Sets .....................................................................................................................................................7.2

7.2 Venn Diagrams .................................................................................................................................7.5
7.3 Product Sets ......................................................................................................................................7.8
..................................................................................................................7.9
.....................................................................................................7.9
7.6 Various Types of Function............................................................................................................7.10
Additional Question Bank ............................................................................................................7.23

8.A.1 Introduction ......................................................................................................................................8.2

............................................................................................8.2
...............................................................................................8.5
8.A.4 Derivative of a Function of Function ............................................................................................8.8
8.A.5 Implicit Functions ............................................................................................................................8.8
8.A.6 Parametric Equation ........................................................................................................................8.9
...........................................................................................................8.9
....................................................................................................................8.10
.........................................................................8.12
................................................................................8.13
.........................................................................................8.14
 ......................................................................................................................8.24
8.B.2 Basic Formulas ...............................................................................................................................8.24
8.B.3 Method of Substitution (change of variable) .............................................................................8.27
8.B.4 Integration By Parts .......................................................................................................................8.28
8.B.5 Method of Partial Fraction............................................................................................................8.30
.......................................................................................................................8.32
8.B.7 Important Properties .....................................................................................................................8.33
Additional Question Bank ............................................................................................................8.43

9.1 Number Series .................................................................................................................................9.1

....................................................................................................................9.2
....................................................................................................................................9.4
.............................................................................................................................................9.5

10.1 Introduction ...................................................................................................................................10.1

...........................................................................................................................................10.5

11.1 Introduction ...................................................................................................................................11.1

............................................................................................................................................11.9

12.1 Introduction ....................................................................................................................................12.1

............................................................................................................................................12.6

13.1 Introduction of Statistics ...............................................................................................................13.2

..........................................................................................................................13.3
13.3 Presentation of Data ......................................................................................................................13.6
13.4 Frequency Distribution ...............................................................................................................13.14
.............................................................13.19
Additional Question Bank ..........................................................................................................13.37

....................................................................................................14.2
...................................................................14.2
14.1.3 Arithmetic Mean ............................................................................................................................14.2
............................................................................................................14.7
14.1.5 Mode ..............................................................................................................................................14.14
.....................................................................................14.15
..........................................................................................................................................14.24

..............................................................................................................14.30
.............................................................................................................................................14.31
14.2.3 Mean Deviation ............................................................................................................................14.33
14.2.4 Standard Deviation......................................................................................................................14.38
14.2.5 Quartile Deviation .......................................................................................................................14.47
..........................................................................................................................................14.55
Additional Question Bank ..........................................................................................................14.61

15.1 Introduction ....................................................................................................................................15.2

.....................................................................................................................15.2
...............................................................................................15.3
.............................................................................................15.8
.............................................15.10
......................................................................15.13
15.7 Addition Theorems .....................................................................................................................15.14
.......................................15.17
.............................................................................15.26
......................................................................................15.28
Additional Question Bank ..........................................................................................................15.52

16.1 Introduction ....................................................................................................................................16.1

16.2 Binomial Distribution....................................................................................................................16.2
16.3 Poisson Distribution ....................................................................................................................16.10
16.4 Normal Distributio .......................................................................16.19
Additional Question Bank ..........................................................................................................16.48

17.1 Introduction ....................................................................................................................................17.2

17.2 Bivariate Data .................................................................................................................................17.2
......................................................................................................................17.5
...............................................................................................................17.6
.....................................................................................................................17.25
...................................................................................................17.34
.....................................................................17.37
Additional Question Bank ..........................................................................................................17.51

18.1 Introduction ....................................................................................................................................18.2

18.2 Issues Involved...............................................................................................................................18.2
...................................................................................................18.3
 ....................................................................................................18.10
...........................................................................18.10
..................................................................................18.11
18.7 Test of Adequacy..........................................................................................................................18.12
Additional Question Bank ..........................................................................................................18.21

Appendices
 Foundation Paper 3: Business Mathematics, Logical Reasoning and Statistics (100 Marks)

Sections Weightage Content Area

-0
Part A: Business Mathematics (40 Marks)

¥¥FEm-oEt
✓
I
so
20%-30% 1. Ratio and Proportion, Indices and Logarithms
(i) Ratio and proportion and Business Applications to Ratio and Proportion problems, Laws of Indices,
Exponents and Logarithms and Anti Logarithms.
2. Equations and Matrices
(i) Equations: Linear Simultaneous linear equations up to three variables, Quadratic and Cubic equations in
one variable.
(ii) Matrices: Algebra of Matrices, Inverse of a Matrix and determinants, solving
involving not more than three variables equations using matrix method
3. -
Linear Inequalities: Linear Inequalities in one variable and the solution space and optimal Solution
-
-

O
¢b
II 30%-40% 4. Time Value of Money
-
-

(i) Simple Interest

16
,disitÉds
(ii) Compound interest and annuity applications,
(iii) Perpetuity
(iv) Depreciation
(v) Effective Rate of Interest
(vi) Present Value
(vii) Calculations of Returns:
(a) Nominal Rate of Return
(b) Effective Rate of Return
(c) Compound Annual growth rate (CAGR)

-
 E-
III 30%-50% 5. Permutations and Combinations
Introduction, the factorial, permutations, results, circular permutations, permutations with restrictions,
Combinations with standard results.
6. Sequence and Series
Introduction Sequences, Series, Arithmetic and Geometric progression, Relationship between AM and GM and
Sum of n terms of special series
7. Sets, Relations and Functions
8. Basic applications of Differential and Integral calculus (Excluding the trigonometric applications)
Applications of Marginal Cost and Marginal Revenue etc.,
Part B: Logical Reasoning (20 Marks)

B-
I 60%-70% 9. Number series coding and Decoding and odd man out.
' 10. Direction Tests
11. Seating Arrangements
II 30%-40% 12. Blood Relations
13. Syllogism
Part C: Statistics (40 Marks)

I 45%-50% 14. Statistical Representation of Data, Diagrammatic representation of data, Frequency distribution, Graphical
representation of Frequency Distribution Histogram, Frequency Polygon, Ogive, Pie-chart
15. Measures of Central Tendency and Dispersion: Mean Median, Mode, Mean Deviation, Quartiles and Quartile
Deviation, Standard Deviation, Co-efficient of Variation, Coefficient of Quartile Deviation.
II 25%-30% 16. Probability: Independent and dependent events; mutually exclusive events. Total and Compound Probability;

17. Theoretical Distribution: Binomial Distribution, Poisson distribution basic application and Normal Distribution
basic applications.
III 10%-15% 18.
Regression lines, Regression equations, Regression coefficients.

IV 10%-15% 19. Index Numbers and Time series

(i) Uses of Index Numbers, Problems involved in construction of Index Numbers, Methods of construction of
Index Numbers.
(ii) Time Series Analysis basic application including Moving Average Method
Basics of -
Mathematics
,

CA Nikhil Rathi

CA Nikhil Rathi
VIRTUAL PROFS
 BASICS OF MATHEMATICS

Figure 1: Number systems

1) WHOLE NUMBERS: - Set of all positive numbers starting from ZERO (0) Ex: 0,1,2,3
2) NATURAL NUMBERS: - All Whole Numbers Ex: 1, 2, 3
3) INTEGERS: - Positive & Negative Numbers. Ex:-3,-2,-1, 0, 1, 2

NOTE: Fractions and Decimals do not form part of the above classification.

Fractions

Number
a =Numerator
written in b=Denominator
a/b
Fig 2 Fractions

pg. 1
CA Nikhil athi
 BASICS OF MATHEMATICS

praetor

Figure 3: Types of Fractions

1) Proper Fractions: When Denominator is greater than Numerator. Ex:

2) Improper Fractions: When Numerator is greater than Denominator. Ex:

:
wer

3) Mixed Fractions: Way of Writing IMPROPER Fractions.

÷
NOTE:
Can be divided or multiplied by a common non-zero number.
Must be converted into simplest form.

How to convert mixed fraction into improper fraction:

i) Multiply the integer by denominator

ii) Add numerator to step (i)

iii)Then write result of step (ii) above the

denominator
-

pg. 2
CA Nikhil athi
 BASICS OF MATHEMATICS

How to convert improper fraction into mixed fraction:

Step 1: Divide the numerator with the denominator.

Step 2: Find the remainder.

Step 3: Arrange the numbers in the following way,

quotient followed by a fraction of remainder/divisor.

= t

pg. 3
CA Nikhil athi
 BASICS OF MATHEMATICS

NOTE: In case to find percentage% multiply the fraction/decimal by 100.

How to convert decimals into fractions:

Step 1: Write down the decimal divided by 1, like this:

Step 2: Multiply both top and bottom by 10 for every number after the
decimal point. (For example, if there are two numbers after the decimal
point, then use 100, if there are three then use 1000, etc.)

Step 3: Simplify (or reduce) the fraction

pg. 4
CA Nikhil athi
 BASICS OF MATHEMATICS

Numbers
Even Numbers Odd Numbers

Number which Which are not

is exactly exactly
divisible by 2 divisible by 2

Ex:
Ex:1,3,5,7....
0,2,4,6,8...

NOTE:-
0 is an even number
1 is an odd number.

Operations on Fractions

Add & r
Multiplication Division
Subtract

pg. 5
CA Nikhil athi
 BASICS OF MATHEMATICS

Step 1) Check the denominator

If denominator is same If denominator is not same

Step 2: Simply add/subtract the Step 2:Multiply all the denominator
numerator with each other
Step 3: Multiply each numerator
with all the denominator except its
own denominator
Step 4: Simply add/subtract the
numerator

Multiply all the denominator with each other and numerator with each other.

Multiply Numerator with other denominator and Denominator with other numerator.

pg. 6
CA Nikhil athi
 BASICS OF MATHEMATICS

÷ .

pg. 7
CA Nikhil athi
 BASICS OF MATHEMATICS

OTHER BASIC PROPERTIES

•
-

TRIANGLE

a) Three sided figure

b) Sum of angles are 180
c) If all sides are same it is called EQUILATERAL TRIANGLE
d) If two sides are same it is called ISOSCELES TRIANGLE
e) Angle opposite to equal sides are equal
f) If all sides are same it is called EQUILATERAL TRIANGLE
g) If two sides are same it is called ISOSCELES TRIANGLE
h) If one angle is 90 the longest side is called HYPOTENUSE and the triangle is called RIGHT
ANGLE TRIANGLE
i) Area = (length x breadth)
j) Perimeter = Sum of all sides

PYTHAGAURUS THEREOM

pg. 8
CA Nikhil athi
 BASICS OF MATHEMATICS

RECTANGLE

i) Area of a rectangle = Length X Breadth

ii) Perimeter = 2(Length + Breadth)

iii) Sum of all angles are 360

iv) If all sides are equal than it is called SQUARE

v) Number of diagonals = No.of sides(No.of sides-3)

vi) Area = length x breadth

vii) Perimeter = 2(length + breadth)

MISCELLENOUS

i) QUADRANTS

ii) Prime and Composite Numbers

Prime Numbers: A prime number has exactly two factors i.e. 1 and the number
itself.
Composite Numbers: A composite number has more than two factors, which
means apart from getting divided by the number 1 and itself
pg. 9
CA Nikhil athi
 RATIO
Nikhil Rathi

① Ratio :
-
① Comparison of similiae
quantities .

② Two / more Quantities

③ Can be written in a :b or a-
b

a-→ anteced / Numerator

b →
consequent / Denominator

AT
④
a_bxbz
a :b Inverse b : a 2

⑤
as =/ 1- a :b Fb :a

⑥ Compound ration
a-b.gg
ac : bd

⑦ Sub Duplicate : -

144 : 169 2144T :lÑ 12:13

⑧ Sub Triplicate :
-
72g : 125 €2s E-
: 9: 5

⑨ Duplicate i -
12:13 144 : 169

⑤ Triplicate : - 5: 5 725 : 125

①
§ ¥ ¥5b
✗
% .

:b Ratio
! a :c continued

④ 31T Ratio =
Integer = Commensurable =3 -2
'

' ' Ii =/ Integer = Non -

Commensurable -_ BE
 Propo!ions
Nikhil Rathi

Proportions : -

B, d
A
-
,
-
C
-
,
-
are in
proportions

g- :-,
=

→¥×tremes=¥°mY¥wÑ
Product
⑨
④=_④ Prop
3rd
⑨ µ
a :b = C: d → Fourth Prop .

I ↳ Second
First Prop .

Prop ,

→ A ,
B ,
C are in proportion

%=z
ac=H¥22 Mean
Proportional
b = Mac .
→
 Nikhil Rathi
Properties of Proportion : -

④ a :b =c :D
d)
§=§
ad=bc

Inverters do

ab_ § →
→
Iii)
§ §
= =

D- Hernando
→
die
G- § §=§-
= →

£+1
→
Cin
g- g- § -11 =

Component o

→
¥b ¥1
→ =

Dividend o
→
c-¥
→
§ § a_
=
=

÷=¥→[a÷b÷a¥]=f¥]÷f¥]
[a-¥×I =[¥d- ¥ ]
→ ✗

→ Component o

¥-3
→ = +
Dividend 0 .
 Nikhil Rathi
Nii ) a :b = C : D= e : f- =
g
:b .

☐ ddendo
. . .-

i -
a + Cte = bid +
f . . . . .
→

( Viii ) a :b = C : D= e : f- =
g
:b .
. . --

Subtrahend
→
.

i " C e b- ¢
f
-

a
-
-
-
= . . . . .
 Nikhil Rathi

Let K
5¥ ¥ ¥1s E
=

ix.
-

=
(b + c- a) K
( at c- b) K
y 2-
=

= ( at b- c) K

Then
(b- c) ( btc -
a ]K ] → K
§ b- c) Cbt c- a) ] → 2-1 b c - ab -
bc -
7- a
c
c)
+ + +

(c- a) ¢ a + c- b) K
] → K
[
¢ -
a) Cat c- b)
] [ → K act C2 -
be -
a 2- act a
b)
+ + +

@ b)
[ [ at b- c) K
] → K
ga
b) Cat b-c)
]
→ K
[
at + ab ac ab lit
by
- - - -
-

[ b)
2 "

K b + b c - ab -
bc -
c + ac t act C2 -
be -
2- act abt
a at + ab -
ac -

ab -
b4

ta-c-bc-af-a-iabtaf-ab-a-ab-b-bc.TK
④ b/c of
K + - b -

b/c #af

[ 0 ]
.
:
 Nikhil Rathi

In!c"
→ 4 -14+4+41-4 5×4 20
froot
4×4×4 ✗ 4×4 45 1024=10445 0€24
law
of Indices
Fifth

( ]
-1h
(a) am ✗ an = am
(b) am :- an = am
-
n
Base should be Same
(C) Atm> n
= Amn
(d) (ab)
"
= ahbh
a° z
(e) =

"
(f) a-
tam
=

am
(8) In
=

( h) x
"
= xb a=b

µ xa=
ya x-p

biker
araisetothe-po-eIr-b.ci
↳
Base
 Loga!"m
Nikhil Rathi

dat
'

then Base I
If nothing
→ to
is
given
Natural
log
"

log
"
→
In = .
=

↳
exponent = 2.7183
"=n
( it a
Logan =x

The
log of base a to the
power n is x

"

Ciii
toga ] =
0 a°=z
④ logan b =

logab
Ciii ) logaa =L a' = a

TundamentalsogLogwwM
1)
Logamn =

Logan +
Logan
2)
Loyang =

Logan -

Logan

Logan log am
"

3) = n

4) Logan =
Log
Logba

5) toga ✗ logza = 2

6)
Logba ✗
Logcb =

Logie

logba
↳§÷
7) =

8) logba = 1-

logab
absa
"

g) =
z

101
logaa
 Nikhil Rathi
↳gCakulationwh
steps : -

Base asf 522 times

step 2 : z
- -

step 3 : -
Mt

DNT
step 4 : No
Log Chahi
-

ye
.

dnt f iz times

steps : - -

÷ MRC
step 6 : -
 At * A power 30475C # '
Values

Equations
.

CA Nikhil ₹athi

Equations Mathematical equation of equality with unknown .

! Power = Linear Equation ~

Power Quadratic Eqh
' '

Ex : 42=16, 5K¥-3=28 etc 2

I
=
-

l Power
' ' "
Ex : -
3×2-14=16 4×2+32-12=0 , 3 = Cubic Eq .

4×3 2×3+3×2=0
④efficient 9×2 Eg : -

:# 32 , ,
etc .

m
✓axz -1b€
coefficients constant
simply put value of options
t : -
into eqn
① The
.

" "

variable Valued are called roots

I x

EX : 32=21,10)c=iooek Two Variable Three Variable :

of eqn
-
-
.
.

Eg -2×+59=9,3×-5-5 Eg -2×+5512=11,3" Y
#
: : - -
2- =3

b+É
'

-13=2--8
b-zÑ
42
Gy y: ✗=
-
- -

.
.

Step -1 : Write Both eq?

-
za

;÷ z÷§ggg§§÷ 1
2×+59=9 ① -
a
Discriminant Roots
3k -

y -5
-

② ✗

§
-

is b2_4ac=o Real d equal

b2_4ac > 0 Real I unequal
step # : Ensure that coefficent §
of # b2_4acLo
of

÷
both eq is same
Imaginary
"
.

[ This can be done

by multiplying b2-4acisperfectsq.to Real ,
rational I unequal
b2_4ac
dunequal.im
Real irrational
coefficent of Eq①
perfect with Eq② I > 0 not sq .
,

Eg : -

(2×+559)×3
.
6×+159=27
↳ Roots m -1 Ton ✓

(3) y= 5) ✗ Ge Root M Th ✓
2y= to
-

c- 2
- .

g
Step #: -

Add / less the common coefficent trooper ties :-/Sum of roots = -

b-
term so that it eliminated
gets a

Eg : -

6/2-1157--27
6Xt2yo / Product of roots c-
-
=

OK
-117g = 17 a

: b
o of § cftrmation If
value of roots
given
-

: -
are
,

U
step Put this value of anyone eqn than
mulity
'

µ @ mgr.gg , product , roots , ,

.

+
,,
ya , , ,
, ,

gg.nduaeuegomaw.gg ,
=
,

gy
,

Eg : 6×-115111=27 Eg : If roots 4,3

(
are

-bz )
"
-

K
Cz
-

t
6×-115--27--762=12 then eqh (
x -

4) ( x -

3) =o =o

x =) 22-42-31-+12=0
x2 -

7×+12=0
 i

( LI ) Linear I:# equality Nikhil Rathi

1) a > b = A is
greater than B
2) a Lb =
A is less than B
3) a > b = A is
greater than or equal! ¥0B
4) a 4- b A is less than or
equal to B

Linear =
Eqn with variable # Power
"
1 .

* LI in one variable .

a)x¥9_ xis
greater than or
equal to g.
- =
Satisfy x 29

ois
'

b) I £0 = ✗ is less than or
equal to 0

-
=
Satisfy > CEO

T-L-f-i-I-z-d.it
LI in two variable

① -1J 79 2-
xty
x 14
,

① Step -1 Remove inequality x+y=g

14
Kty
-

=
,

( Assume as
if no
inequality exists)

⑦ Step -2 Put x= ②
dfindy .
2--0,9=9 ,
7=0 ,
y -44
Put
y=o
I
find x .
y=o , x=9 ,
y -0,2=14

③ Step 3 Plot the lines .

A greater than tf zero # IT dÑ '

-
I Vice versa .

- .
-

✓ Greater than D- ¥34T dst Are

Line :c :

Is At A Area
✓ less than A Line
① ✗ + y
-
as 74%9 , Kty -5*-0
-

②st" let x=o:y=g✓

-
( Q 'S )
let ( 9,0)
g=±:x =

③ Plot the lines .

y
^
749£14 This is area
satisfy Xty⑦g
-

12

"

10
→ Satish Answer
g ⑧
#
8

Kty
7-

• -920
5

3
greater Min Liu D- 34T
i -
flat Arch
O l 2 3 4 5 6 78 g•° 10 11 12 ¥

xty 4

✗ Ty -14<-0

:
It

16

71-7
-

"

14 0 ¥
13

12
1
Rt ) €0
11

-
in
to

Cine£AsW-4ÑAr:
o

7-

i
① I 1213%41516 &
23 4 56 7- 8 9 1011
 ✓
Virat Kohli ✓ ✗

/Msdhoi7i_#
obit Sharma ✗

Sachin Tendulkar ✓ ✓

Yuvraj Singh ✗

① The player should be Captain d Tmdia Team

]
② Player should have won an Ice Trophy Ms Dhoni
-

③ Player should have won a

ipl

1-
⑤
height

t.tt#-
i¥aÑsa Lined OT
FEI
-

> Dress
Time Value of Money .

CA Nikhil athi
 Value overtime ?
Why of money changes
⑨
Inflation ⑤ Interest lost ②
Opportunity last ④ Risk factor .

Jpesog-nterestwoht-T-f-Q.is silent
'

's .I
"

use .

① Simple Interest ② Compoind Interest

t t
Interest on
Principal Interest on Interest +
Principal

✓
A- Amount ~

F- Principal
•
5. I. = Pxrxt r
-

f- Time
Rate of Interest (p a)
in
yrs
-

A=P(
HIM )mt
A =P + Prt m no
of compounding
M
-

- -

A Pcitrt )
Annually 2
•

9fective-nterestRakmeÉ Monthly semi-Annually 2

Quarterly 4
12

)mt
365
Yearly
(
E- -2
Weekly
+
Im
=
52

CA Nikhil athi
 If nothing is
given
than take m=z
y
Compounding meaning : -

Ex : Sonali takes loan @ C. I. Nikhil → P= 2000€

from
-

→
↳ -1=2 yrs r =
1001 .

Compounded ⑤ Compounded Annually Simple Interest

⑨
Annually Semi
Yr -2
1) Principle for Yr -1 2000€ " Principle for 6 months 2000€ A =P( Hrt)

1,0505J
Yr -2 Interest 1000×10-1 Interest 1000×10-1 50€
§z
.
.
✗

zoo I 1,00011+101×2)
1) Principle for Next bmnt 1000+50

1) Principle for Yr -2=>2000+100 Interest 2,050 ✗ 10.1.x

,6z
52.5 I 110004.2 )
1,300£
Yr -
2. Interest 2,200×10-1 . 3) Principle for next 6 months 1050+52.5=31102.57 1200 I
Interest
220£
1102.5×101×6,2=355.125 I
i. Total amount at the End
Yv -2 1,000+100+110
1210€ .
of 4) Principle
Interest
for Next bmnt
1157-625×10 /
1202.5+55-5.125=>1157.62
'

-
6-
✗

12
57-881255 5) YV -2

i. Total amount at the End of

Yv -2 1,000 -150+52.51-55.125+57.88125
1215.50625 I

CA Nikhil athi
 Ex : Sonali takes loan @ C. I. Nikhil → P= 2000€
from
-

→
↳ -1=2 yrs r =
1001 .

⑨ Compounded Annually E. m=z ] ④ Compounded Semi

Annually [ :m=2]

A=P( HI )mt m
A=P(
HIM)mt
1,000111-10%-11×2 2
2,000Gt 102%-12×2
"
1,000/1.20 [ 1210€ 2,000 ( 1.05 ) 1215.50625 I

9fective_nterestRakw-
⑨ Compounded Annually E. m=z ] ④ Compounded Semi
Annually [ :m=2]

Amount at End 1210 I Amount at End 1215.50625€

Principal 2000£ Principal 2000£
i. Interest 2105 for zyrs : Interest 215.506255for 2
yrs
i. 105 I for 1 yr
:
107.753125 E for 2
yr
i , . . i.

-1.9 Tnterest 10.5-1 -1.9 Tnterest 10-77531251

10-5 1.
1027,700503-125.1
- -
-
. .
. . . . .

1000

CA Nikhil athi
gfed-ive-nterestRakw-tmtE-4-r-mj-s.co
Compounded Annually [ : .m=z ] ⑤ Compounded Semi
Annually [ :m=2]

E=(+io÷j* E=( En)mt

-
I + -
z

i. if -1
[+102--1]*2-1
=

21.1 .

for 2
yrs
= 1.21550625 - I

i. 10 -5% for 2
Jr
.

= 21.550625% for Zyr

10.7753125% Zjr it

CA Nikhil athi
 Fixed
ffwfnuity.ir
payment
Amount #-)

✗
>
•

Annuity Fixed Tenure

I
2
5,000
-

3 10,000
• Yr Amount (E)
&
2
$°°°
5) 000 ✓ Yr Amount (E)

✗
3 5,000 I 5,000
I. 5 5) 000

3 5,000

Annuity

r
t
Regvlaecuseitifnothingisgiuen) /
Due Immediate

t
1st Installment 1st Installment
@ end
of period @ start of period

CA Nikhil athi
 Future Value
Value compound interest * Formula]
of investment in
future . [
Simply use

A =P
[ itrmymt Future Value
→
Replace A with F. v.
P with C. F. → Cash
flow Mt += Rate
of Interest
F. V. C. F.
[ I + No
of compounding
=
m
-
- -

+ = time

F- v. 3000
[ H12m)mt
""
3,000
[ It
12¥ ]

[ 1.1212
3,000

3763.20 I

CA Nikhil athi
 Future Value of Annuity Regular A Immediate
Regular .
Immediate
Formula

µEn)ml )
: -
F. V. = C. F.
⑨ Same formula as
regular
In ⑤ Multiply answer
by ( trm)

Using same example : -

µIm¥ )
F. v. = C- F. ⑨ Future Value =
5,305.35 I

③
Multiply / HIM) 5,365-35×11 -10¥)

6166.5

÷¥]
soo

50014.14%-41-1 5,365.35 I

CA Nikhil athi
 * Shortcut
for P . V. 9 Annuity Regular .

r-m.Y.AM#stepz0:-i+stypIo
"

step ② :
-

µd9T Duration

step ③ : -

z÷ steps
=P Duration

cmxt)
# 2÷ step z=|
step ④ : -
GT step ④ : -
MRC

step GTX Annuity step ⑤ MRCX

Annuity

step 5 Won't apply if no annuity -

,

given
is & in place .

New steps step ③ ✗ Amount

given

CA Nikhil athi
 * Perpetuity : -

¥-⑧→if
given

12=1 Each Receipt / payment r= rated Interest

,

9
Compounding
No
growth if ( m =

given ]
.

g.
,

¥+0
* CAGR -

* P.U.co/AnnuityDue-
Same as of Annuity Due
F. V.
Amidst sirj ek period att
m2→

CA Nikhil athi
 Application
⑨
Leasing Galdan
Simply
:*

Difference
Actual
Present Value
amount of asset tt check ANTI
( it > (ie) Lease
Ciii)
If is ok
→

④ 44 → . . i. Not OK

⑤ Sinking Fund :
-

Simple Future Value of Annuity Regular

② Capital Investment :-( it P.V.SI Cash
flows Net present value
Decisions cii) current cost Investmentmerit
of ✗
i
good ( N P V70 )
If
ciii > it →
Decision is .
. .

ii > i → not
good .CN P V < 0 )
" i. . .

④ Bond Valuation :-( iii. v.

di) P.v. 9
of all
Terminal
cash
flows ( interest)
.

Value C Principal )

⑤ Depreciation :-( i , Use same

formula as C. I

Only difference
Iii) is

Év.=vawe(tz)mtwY
CA Nikhil athi
 Permutations & Combinations
Additional Rule : Ñ Two tf # Haast This
"
That
Nikhil Rathi
things
"
-

Saath i OR

→
Multiplication Role : -
* Two
Things Saath A 9§#Ñ 244%1 This "

AND
"
That

"
Add
'

(m )
'
th OR
Multi p (Mxn)
"
"
AND
.

→ Factorial :
④ Represented as n !
-
or Ln
d- Sabhi Multiplier
⑨ N dat
'

art
'

. numbers .

Ex :
⑦ -

2! = 1×2 =
2

3! = 1×2×3 =
6

4! 1×2×3×4=24
§
=

15 ! 1×2×3×4 ✗ 5×6×7×8 ✗ 9×10×11 ✗ 12×13×14×15 =

1307674368000

④ 0 ! =L ←

7
429 ( order imp)
→
Permutations : -

① Arrange is .

'

R' total N'

( objects from objects
'

②
Taking Arranging)
.

③ Total no .
7

nyg
objects

Ñ¥
=

Ryota
arrange .

art #

→ ① The
factors of npr are
'
r
'

→
'

n' articles lost Arrange that ¥ so that

Aff
'

2
'
articles FED 2710T of -7T 3115T

1-
"

(n -11 !×(n 2) -

→
short :) 31712 AP of No .
RT ¥ d som

Kot ¥0 dat
 Tom
Tseng 's "" Nikhil Rathi
9
cafe;
Term
i.

1- ↳
Biggest
Term

Circular
*
permutations : -

① In
for D things
'

order to
'
N no
arrange .

in a circular
way .
is In -

1) !

* ↳ Provided no restriction [ Eg : -
Two people won't

② it with each other]

"
such that sit
two persons
② TJ cord No

together 1- In 1) !
-

Same formula applies

for
*

necklage .

±
 Nikhil Rathi

* For combinations :
-
order is
n④
important .

"
i.

Cr
ftp.T
-

* ncr = In -
r

*
ntlcr hcr
"
=
(r t
-1

*nCo=n(
* No -9 diagonals
Inch -33

n=no_da
 Nikhil Rathi

* No .
9 hand shakes = n
 AP
Sequences →
→ GP
.
Nikhil Rathi
① Set of ordered which has
number same
logic .

E- ✗ i -

0,112,3 , G . . . . . D → whole numbers .

2,4 , 6,8 , 10 -
. - .
. @ → +ve even number
315,7 ,
S . . . -
-
D → 1- up
-
odd numbers .

>① finite
② Sequence #②
Infinite
10
→
Ending Point

§ +1+2+3 -14+5+6 -17-18+9+10

( ↳
= I
→
starting point
babudn -

E. mmation

t
series .

- -

H.w=E✗.6A%
 [ Arithmetic Nikhil Rathi
A. P .

Progression
"
→ It is sequence or numbers ordered by add of common number
.

Ex : -

2,4 , 6,8 , 10,12 - -

-
-
D

0 , 5110,15>20 , . . . - .
- to

First term
'
on AP is called
'
* a

Common add" called

'
'
* is d

i. nth term = at Cn 1) d
-

* Sum a n terms of an AF .
Brahmashtrc
""
torn

f- last term .
,a= First Tern ,

D= Common
difference

* Sum of
first n natural numbers : -

0 , 1,2 , > ÷ Whole Numbers

Natural Numb D=) ☒ , 112,3 . .
.

'
* Sum of N' whole numbers .
 CGP ) Nikhil Rathi
☒ Geometric Progression
GP are no .( series ) which have a common ratio b >
Which it is multiplied / divide .

Ex : -
2 , 4,8 ,
16,72 - - -
-

l
, 7,49 , 343, 2401 .
. . - -

81 9,
§
729 , ,
I - -

,
- -

term of the
' '

G. P
the
first
a cis .

'
'
V is the common ratio .

Nth term of a G. P . is

arch 1)
-

GM b) GP
*
If a , care in .

then

bZ=ac

* AM If a , b) C are in AP

then 2b=ac

Sum D Ksp : -

f
sn aC) if v21

µ I r
-
-

ad if r> I
 sum Nikhil Rathi
if 8=1 .
: nxa

For infinite series

Sn=
¥r ,
n =D

→
Sn =
¥ -kr
,
 Nikhil Rathi
Chapter -7 Sets Relation & ,
functions
→ Sets : -
A well
defined collection of dct objects .

② aE⑦
A=Thesetofvowek
Ex: - A =

t
|
t
Denote
set
Elements
| Rule
i
form .

/ Set Builder
form

d-
Roster Braces
/
A =
{ 1 2) ,

A={z:K2_3K+2
I
Algebric / Rule form .

/ Set Builder
form -

form

sets
may
contain finite A
infinite
A The set all
Ex : -
=
of whole numbers
A = ✗0 , 1,2 3, .
. . -
.
-. 02

f' ⑧ A
'

Not an element 17=4 a. e. 0,0 ,

L
1
→ A = ✗ I ,
2. 3 ,
4,57 ,
13=41 ,
2. 37 Not an elements
*
: .

B④☐
a t
Sub Set -

¥
f- WI bids set elements are
part of other set .
Then it is called subset .

✓→ If all elements are

equal then it is called equal sets .

If all elements are not equal then it is called null set

(4) ( Not equal )
-

onlyone-elemc.int
set
If Singleton
→

Cardinal number
µ
→ A ⑥ B A⑧B 17=4112,3 4,5L ,

] h=G
13=4 4,5 61 .

I t ,

Union Intersection 17013=41,2 3,4 , ,

5,6$
( Saare elements ( Sirf Common 171713=44,52
Ek Baar ) 4TH ) Distinct = Cardinal =
170B¥ Elements .

elements Number
A B
n ( An B) = DCA ) t n (B) -

n CAU B)

1
AM B

Fis Venn dig

: -
 Nikhil Rathi
→¢Ho# -

" " "

→ The set which contains all elements is called

"

Universal Set = S

Eg : - S =
{ Iz , -3,4 ,
É I. 8J
P = 42 3,42 , ,
D= { 5,6 ,
A ={ 112,3 4,5 , , 6,74

rE= IF -312¥ 5¥ Taree

'

/P elements .

P' or PC =
{ 1,516,718£ -

'

P U Q { 7,8L U { 5,62
Eg :
- 115,6 ,

41,5 , 6, 7,8L

→
Equivalent
Eg:É
Sets

, 5,62
: -
Set
-
whose Cardinal no .

aeesam①
13=4100,175 ,
/ to {

in -471=33 = NCB )

-
:
17dB ale
equivalent sets .

>
→ Power set : -

2 8
17=41,2 34 ,
-
-
-

:P (A) = { 11,421,431 { 1,25 { 1,31 , , ,

12131,4112 32,401 ,

shortcut-tzmunh-d.de
DAM f)
t
Delta

A- B all elements of A that

are not in B
 Nikhil Rathi
Fordered pair : -
Two elements listed in
specific order .
Ca , b)
→
Cartesian product
of sets : -

17=41,2 3L , , 13=43,5 61 >

17×13 =
{ 4,3 ) ,
( 1,5 ) ( 1,6 )
,
,( 2,3 ) (2,5 ) , ,
( 2 6) , ,
(3,37/3,5) ,
(3) 6) {
BXA = { ( 3,1 ) ,
( 312) ,
( 3,3) ,
(5111,6-12) ,
( 5 , 3) , (G) 1) (6 , ,
2) ,
(G) 3) }

A ✗ B =/ 13×17

carchnalnumber-JCS.int
Across B) =/ ( B cross A)

nÉA=ÉB=ncBxn→ cut

If 17=01 ⑤ 13=0 then 17×13=0 = BXA

⑨

a
①> ④
-
Relations.WS
1 mapping >
II '
R
'

#
generally denoted by

? ppig4y
z
mapping 2-
# Relations will be defined bet" two sets .

5 > got # R :O A → B

lo -
t

R={f£②€q;¥;ze§,ab°°%
such that "
( visual
form) much .

÷:÷÷÷
-

.CI#yRange
2- # E- { ¥1
n si n 4 ,
2¥ )
(
.

=
Images =L Stc output )
1,4 ,
-
-←-

←
= Pre -

Images =L 112131 ( Input )

⇐om
Domain
of Relation =L 112,34 = set of p-r-gfe.es .

Range-
9 Relation
-
Rpn =L ¥4,91 = Set of Images
5-Q'sgiu#
"

Co =L
"

Co domain 7 velaton
- =
124%10.2 = set 9 B
- =

Co
Range C -

Domain

✗Range is subset
of co -

domain .

Any relation is subset of Cartesian product .

⑧ talent Relation :-( function)

Relation R
'
set
Shaadi ( secede Gop
'

A' said to be
he]
element
'
on a is Identity relation , If every
related
Set A' to
its#
'

of is
-

17 A

:O :O
 Nikhil Rathi
☒ Universe Relation : -

A A
d2zÑT
Giant
Sare elements sabse related E# I
-
-

☒Reflexive relation : -

⑨ f) *
Geeks ✗ Gppfa
A

ennui

' '
Reflexive relation
Relation R set A' said to be Id-eny.tn element
If every
'
on a is ,

related
Set A' to
its#n#-
'

of is

④ Symmetric Relation : -

I A

#
M

A R: A said to be Ca b) ER than also Cb A) ER

relation A is
symmetric If
→ .
, ,

Transitive Relation : -

A R% to be transitive
relation A 17 is said relation
If
→
.

@ b) ER I (b) c)
, E
Ry
than @ c) ER , ✓

Equivalence Relation

At Relation
Reflexive
@ Symmetric ] Equivalence
③Trasitive Relation .
 Special
Nikhil Rathi
TunctionsmY- typed Relations
f- No
inputs has outputs
two
-

inputs
-
-

NJfspPci@Cp.re
No extra
-
B →
outputs
Inputs # cimges )
-

images]
2>-4
3>-9 -
4

One tone E2¥nputÑ Differentoutput

② Onto / Surjective 52
Output
ÑT bids
Input .

Combo }① ⑨ Bijection Function