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CAT Exam- Simple Interest and Compound Interest Questions & Answers, LR & DI |Day 10

CAT Exam- Simple Interest and Compound Interest Questions & Answers, LR & DI |Day 10

Edited By Irshad Anwar | Updated on Sep 12, 2023 09:36 AM IST | #CAT

In the previous article, we discussed the CAT Exam strategy on how to prepare profit and loss, DI (Misc.) and improve reading skills in Day 9 of CAT preparation on the basis of the CAT syllabus along with Simple Interest Compound Interest CAT Questions.

We're back with a strategy for Day 10 of our preparation for the CAT 2023. In this article, we will be discussing strategies for the following topics, including Simple Interest Compound Interest CAT Questions, concepts, and tricks for CAT Exam.

Follow the 60-day CAT exam preparation schedule we prepared for you to get a flow, plan, and schedule for your preparation. Simple interest and compound interest CAT questions are a must to do questions for exams. They come in exams every time and many students often get stuck in these types of questions as well. We have brought to you the guide to solve these types of questions. These simple interest and compound interest tricks for CAT could be useful to students.

CAT Exam- Simple Interest and Compound Interest Questions & Answers, LR & DI |Day 10
CAT Exam- Simple Interest and Compound Interest Questions & Answers, LR & DI |Day 10

Part-1: Quantitative Aptitude For CAT 2023

Topic: Simple Interest And Compound Interest Concept

Simple Interest:

Let you give your friend Rs 1000. After 3 years he returned Rs 1300.

You have received Rs 300 more. These Rs 300 is the simple interest for 3 years at the rate of 10% per annum.

Simple Interest is calculated by:

SI = {(P x R x T)/ 100}

Where, P = Principal Sum

R = rate of interest at which sum is borrowed or lent

T = time period (the duration for which money is borrowed/deposited)

Alternatively,

Calculate the interest for 1 year and multiplied by the time for which interest is to be calculated.

Compound Interest:

Compound interest is nothing but interest on interest. We can understand this by following the example:

Let Rs 1000 be lent at the rate of 20% per annum compounded annually for 3 years.

Year- Wise Interest

1st year

2nd year

3rd year

Rs 1000 (Principal)

20% of 1000 = 200

20% of (1000 + 200) = 240

20% of (1200 + 240) = 240 +48 = 288

Total Interest for 3 years = 200 + 240 + 288 = Rs 728.

Alternatively, we can use the formula

Amount= P (1 + R/100)n

P = Principal

R = Rate of interest per annum compounded annually

n = no of years

If the rate is compounded half yearly: the rate is to be taken per six months, and the time will be a multiple of half years.

Similarly, we can modify the rates and time if interest is compounded quarter yearly, monthly etc.

Simple Interest Compound Interest CAT Questions can be divided into:

  • Questions that involve calculations of simple interest.

  • Questions that involve calculations of the rate of interest (Principal, time and Simple interest are given).

  • Questions that involve calculations of time (Principal, rate of interest and Simple interest is given).

  • Questions that involve calculations of compound interest If the rate is compounded annually/ half yearly/ monthly/ quarterly yearly.

  • Amount and Principal are given; Time or rate will be asked.

  • Questions based on the difference between SI and CI.

  • CAT Si and Ci practice questions with solutions

Simple Interest Compound Interest CAT Questions From CAT Previous Year Papers

Q1. A person invested a total amount of Rs 15 lakh. A part of it was invested in a fixed deposit earning 6% annual interest, and the remaining amount was invested in two other deposits in the ratio of 2: 1, earning annual interest at the rates of 4% and 3%, respectively. If the total annual interest income is Rs 76000 then the amount (in Rs lakh) invested in the fixed deposit was [CAT Question Paper 2019, TITA]

Simple interest CAT questions

Ans: 9 lakh

Let, Amount invested in two other schemes are 200x and 100x at 4% and 3% respectively.

So, Amount invested in a fixed deposit = 1500000 – 300x

Two other schemes are 200x and 100x at 4% and 3%, respectively.

Total annual interest = 6% of (1500000 – 300x) + 4% of 200x + 3% of 100x = 76000

So, 90000 – 18x + 8x + 3x = 76000

So, x = 2000

Therefore, amount deposited in a fixed deposit = 1500000 – 600000 = 900000

Q2. Amala, Bina, and Gouri invest money in the ratio of 3: 4: 5 in fixed deposits having respective annual interest rates in the ratio of 6: 5: 4. What is their total interest income (In Rs) After a year, will Bina's interest income exceed Amala's by Rs 250? [CAT Question Paper 2019 slot-1]

  1. 6000

  2. 7250

  3. 6350

  4. 7000

Solution: (2)

Ratio of interest of Amala, Bina, and Gouri: 3 x 6: 4 x 5: 5 x 4 = 9: 10: 10

The interest income of Amala, Bina, and Gouri can be taken as 9x, 10x, and 10x, respectively.

Total income = 29x

Difference between interest income of Bina and Amala = 250 = (10x -9x) = x

Therefore, Total income from interest = 29 x 250 = 7250

Prerequisite Before Practising Simple Interest Compound Interest CAT Questions

To prepare this topic for the CAT exam and to practice compound interest tough questions, students must be well aware of the following:

  • Fractions and percentages on their fingertips.

  • Vedic Maths (Simplification and Approximation)

  • Ratios

Simple Interest And Compound Interest Tricks For CAT

  • Use the concept of fractions and percentages in SI and CI

  • Use the concept of successive change in the problems of compound interest.

  • Difference between SI and CI for two cycles = P(r/100)2.

  • Difference between SI and CI for three cycles = P(r/100)2 x (3 + r/100).

If a sum of money becomes x times in n years at the simple rate of interest, then the rate is calculated as

  • R = (x - 1) x 100/n

  • Practice simple interest questions and compound interest questions ( discussed in the introduction) separately.

References To Study (Theory) Simple Interest And Compound Interest Concept

  • Quantitative Aptitude for CAT by N K Sinha

  • 2iim Online Learning Classroom

References To Study (Practice) Simple Interest Compound Interest CAT Questions

  • Arun Sharma: A Quantitative Approach for CAT (6th Edition)

  • https://insideiim.com/best-resources-cat-exam-preparation

  • CAT previous year papers

Part-2: Logical Reasoning And Data Interpretation

Topic: Blood Relation (LR)

Blood relation is one of the most important parts of LR. A blood relationship is defined as any relationship formed by birth or marriage.

Birth Relations (paternal or maternal): Mother, Father, Son, Daughter, Brother, Sister etc.

Paternal: Relations from the father’s side.

Maternal: Relations from the mother’s side.

Relations from a marriage: Mother-in-law, father-in-law, sister-in-law etc.

Types Of Blood Relation CAT Questions:

  1. Direct Questions/ Single statement based: Relation between two persons is given indirectly and you have to find the correct relationship.

  2. Puzzled Relation: A set of information is given about the relations, professions, places etc. Using that information, answers have to be determined.

  3. Coded Blood Relation: Relationships in the form of codes are given.

Ex: A @B means A is the father of B

A#B means B is the father of A etc.

  1. Relationships of mixed blood: Relations of two or more families are involved.

Approaches To Be Learned To Solve CAT Blood Relations Questions

  • Family Tree: Forefathers and mothers serve as the roots of the tree, followed by their children forming the stems of the tree and then grandchildren.

It is a visual representation of a family and the most helpful trick to solve the questions of blood relation

  • Back-tracking: In the questions of the type of single statement, draw a family tree using the last information first.

  • Elimination of the Wrong option: Most effective in the questions of coded blood relation. By using the generation gap and gender identification, wrong options can be eliminated.The gender of a person cannot be determined by their name.A specific notation should be used for females and males while drawing the family tree. Members of the same generation should be represented at the same level.

Blood Relations Questions for CAT That Can Help You Learn: (Based on the CAT Exam)

Direction (Q1- Q2)

In a family, there are seven members- A, B, C, D, E, F, and G. A and B are a married couple, A being a male member. D is the only son of C’s brother. D is the brother of E and F. G is the head of the family, whose wife died long ago. G has two sons and one of which never got married.

There are only three generations in the family.

Q1. How is F related to A?

  1. Mother

  2. Sister-in-law

  3. Sister

  4. Daughter

  5. None of these

Ans: (4) Daughter

Q2. Who is an unmarried member of the second generation?

  1. C

  2. G

  3. H

  4. Cannot be determined

  5. None of these

Ans: (1)

Solution:

G (male, since he had a wife who died long ago) is head of the family and has two sons.

A, who is the brother of C (since D is the son of A and D is the brother of E and F), the only possibility of G’s sons are A and C), is married to B and has a son D. So, A and C must be in the second generation. Therefore, D must be the son of A. Also, E and F are sisters of D, and A must be the father of E and F.

C is unmarried since he is the brother of A (G has two sons and A is the brother of C)

Q3: Read the following instructions:

P $ Q means Q is the brother of P;

P # Q means Q is the mother of P;

P x Q means P is the son of Q

If the code of a family is A # B $ C x D, who is the father among them?

  1. D

  2. B

  3. C

  4. A

Solution: (1)

A # B means B is mother of A and hence B is the mother in the family

B $ C means C is the brother of B.

C x D indicates C is the son of D and hence D is father in the family

D is the father of B and C, and B is the mother of A.

Hence, option 1 is correct.

Prerequisite Before Solving Blood Relation Questions

To Prepare for Blood Relations, students must have the knowledge of:

  1. Basic family relations

  2. Generation gaps

  3. Relations of in-laws

  4. Basic knowledge of coding

References to Study (Theory):

  • LRDI for CAT and GMAT by Nishit K. Sinha

  • ‘www.catking.in (Web as well as YouTube Channel)

References to Study (Practice):

  • Verbal and Non-Verbal Reasoning by R. S. Aggarwal.

  • CAT previous year papers

Part-3: VARC ( Grammar tenses for CAT Exam)

Topic: Tenses Part-1 ( Present Tenses)

Tenses are of three types: present tense, past tense, and future tense.

Tenses are the most common area of error in English. So, we have to prepare tenses well.

Three easy steps to solve the problems that involve errors in the present tense:

  • Learn the most common errors

  • Spot the errors

  • Correct the errors

Present Tense:

The present tense describes an action going on in the present time. The present tense can further be divided into four categories to indicate the action as follows:

Simple Present Tense/ Present Indefinite Tenses: denotes continuous action.

Example: Ganesh sits on this chair.

Present Perfect Tense: denotes an action that has been completed.

Example: Rohit has gone to school.

Present Continuous Tense: denotes an action that is happening in the present time.

Example: Seema is drinking tea.

Present Perfect Continuous Tense: denotes an action that occurs throughout a period.

Example: Seema has been going to school.

Questions On Present Tense From CAT Previous Year Papers

Q1. Prem Chand ……… novels that are appealing to people of all ages.

  1. Wrote

  2. Had written

  3. Had been writing

  4. Has written

Ans: d

The action occurs over a period.

Q2. Roji, I ……… seen you for a long time, how ………?

  1. Had not, are you

  2. Have not, have you been

  3. Did not, had you been

  4. Have not, are you been

Ans: b

Not seeing Roji, is the action that has been completed in present time.

Q3. She ……… theatre dramas. ……… any recent play?

  1. Loves watching, have you watched

  2. Love to watching, did you watched

  3. Is loving, have you been watching

  4. Loves watching, had you seen

Ans. a

‘Watching dramas’ is the continuous action in present time

With the present indefinite, past perfect cannot be used. So, d is wrong and a is correct.

Q4. Naina and Palak ……… to our house to play the indoor games with us.

  1. Will have been coming

  2. Had been to come

  3. Are coming

  4. Come

Ans: c

Prerequisite:

  1. Basic knowledge of verbs and helping verbs.

  2. Basic knowledge of parts of speech.

Tips For Error Correction In Present Tenses:

  1. Learn the rules of all types of present tenses.

  2. Read newspaper articles.

  3. Practice error-based questions on tenses.

  4. Attempt Mock-Tests.

References to Study (Theory):

  • How to Prepare for Verbal Ability & Reading Comprehension for CAT by Meenakshi Upadhyay and Arun Sharma (9th Edition)

  • Learn English with Rebecca · engVid (YouTube Channel)

  • Preply.com (Web)

References to Study (Practice):

  • engvid.com (Web)

  • Oxford Practice Grammar (sixth edition)

  • Practice on sample question papers.

Tomorrow, we will return with a plan for Day 11. Put in the work and pay attention.

Thank You

All the best.

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In the context of Karnataka's reservation categories, Vishwakarma is classified under Category 2A . Specifically:

  • Category 2A : This category includes communities that are identified as Vishwakarma , along with others such as Panchamasali , Nayaka , Goud , and others.

Hope it helps !

Hello aspirant,

A bachelor's degree from an accredited university with a CGPA of at least 50% (or an aggregate of 45% for the SC, ST, and PwD/DA categories) is required in order to appear in the CAT exam in 2024. Duration and manner of degree: The course needs to last three years. The mode might be online, distant, or regular.

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Hello student

As a self-employed individual with your own cafe, you'll need to provide documents that establish your business and work experience. Here are some documents you can prepare for your CAT application:


1. *Business Registration Documents*:

- Partnership Deed (already have)

- Business PAN Card (already have)

- FSSAI License (already have, though it's in your partner's name)

2. *Proof of Business Ownership*:

- Affidavit or declaration stating your ownership and role in the cafe

- Business registration certificate (if you have one)

3. *Proof of Work Experience*:

- A letter or certificate from your partner or co-owner confirming your work experience and role in the cafe

- A detailed resume highlighting your entrepreneurial journey and responsibilities

4. *Financial Documents*:

- Income Tax Returns (ITRs) for the last 2-3 years (if applicable)

- Balance Sheets and Profit & Loss statements for your cafe (if audited)

5. *Rental Agreement*:

- Already have, but ensure it's updated and signed


Additional tips:


- Ensure all documents are scanned and uploaded in the required format (usually PDF or JPEG)

- Keep your documents organized and easily accessible for the application process

- Be prepared to provide additional information or clarification if requested by the admission authorities


Remember to check the specific requirements for each B-school you're applying to, as they may vary. Good luck with your CAT application!

Hello aspirant,
The CAT exam syllabus is not officially prescribed, but it generally includes topics from the following sections:

1. Verbal Ability and Reading Comprehension (VARC)
2. Data interpretation and logical reasoning
3. Quantitative ability

  • Arithmetic

  • Algebra

  • Geometry and Mensuration

  • Number System

  • Modern Math

It seems unlikely that you would be able to get admission in the BTech CS branch at BIT Sindri or Mesra with a CML rank of 2058 and category rank of 433.

Key points:

1. The search results indicate that a CML (Common Merit List) rank of 2058 is quite low for admission to premier engineering colleges like BIT Sindri or NIT Mesra.

2. The cutoff ranks for BTech CS branch at these institutes are usually much higher, often in the range of 1000-2000 for the general category.

3. With a category rank of 433, you may have a better chance of getting admission in the reserved category quota, but the competition is still quite high.

4. The search results do not provide specific cutoff details for BIT Sindri or NIT Mesra, but the general trend suggests your current ranks may not be sufficient for the CS branch in these institutes.

My advice would be to:

1. Check the latest cutoff ranks and admission criteria on the official websites of BIT Sindri and NIT Mesra.

2. Explore other options like state-level engineering colleges or NITs where your current ranks may have a better chance of securing admission.

3. Consider improving your performance in the next attempt of the entrance exam to increase your chances of getting into your desired BTech program.



View All

1-radian measures 600. (True/False)

Option: 1

True


Option: 2

False


$111111^2$ = 

Option: 1

123456654321


Option: 2

123454321


Option: 3

123454321


Option: 4

12345654321


1111112 =___________ 

Option: 1

 123456654321


Option: 2

1234554321


Option: 3

123454321


Option: 4

12345654321


159702 is divisible by

Option: 1

7


Option: 2

9


Option: 3

11


Option: 4

6


1600 satellites were sent up by a country for several purposes. The purposes are classified as broadcasting (B), communication (C), surveillance (S), and others (O). A satellite can serve multiple purposes; however a satellite serving either B, or C, or S does not serve O. 

The following facts are known about the satellites: 

1. The numbers of satellites serving B, C, and S (though may be not exclusively) are in the ratio 2: 1:1. 

2. The number of satellites serving all three of B, C, and S is 100. 

3. The number of satellites exclusively serving C is the same as the number of satellites exclusively serving S. This number is 30% of the number of satellites exclusively serving B. 

4. The number of satellites serving O is the same as the number of satellites serving both C and S but not B. 

Question:

What best can be said about the number of satellites serving C? 

Option: 1

Must be between 450 and 725 

 


Option: 2

Cannot be more than 800 
 


Option: 3

Must be between 400 and 800 

 


Option: 4

Must be at least 100 


1600 satellites were sent up by a country for several purposes. The purposes are classified as broadcasting (B), communication (C), surveillance (S), and others (O). A satellite can serve multiple purposes; however a satellite serving either B, or C, or S does not serve O. 

The following facts are known about the satellites: 

1. The numbers of satellites serving B, C, and S (though may be not exclusively) are in the ratio 2: 1:1. 

2. The number of satellites serving all three of B, C, and S is 100. 

3. The number of satellites exclusively serving C is the same as the number of satellites exclusively serving S. This number is 30% of the number of satellites exclusively serving B. 

4. The number of satellites serving O is the same as the number of satellites serving both C and S but not B. 

Question:

What is the minimum possible number of satellites serving B exclusively? 

Option: 1

100


Option: 2

200


Option: 3

500


Option: 4

250


1600 satellites were sent up by a country for several purposes. The purposes are classified as broadcasting (B), communication (C), surveillance (S), and others (O). A satellite can serve multiple purposes; however a satellite serving either B, or C, or S does not serve O. 

The following facts are known about the satellites: 

1. The numbers of satellites serving B, C, and S (though may be not exclusively) are in the ratio 2: 1:1. 

2. The number of satellites serving all three of B, C, and S is 100. 

3. The number of satellites exclusively serving C is the same as the number of satellites exclusively serving S. This number is 30% of the number of satellites exclusively serving B. 

4. The number of satellites serving O is the same as the number of satellites serving both C and S but not B. 

Question:

If at least 100 of the 1600 satellites were serving O, what can be said about the number of satellites serving S? 

Option: 1

At most 475 

 


Option: 2

Exactly 475 
 


Option: 3

At least 475 

 


Option: 4

No conclusion is possible based on the given information 


1600 satellites were sent up by a country for several purposes. The purposes are classified as broadcasting (B), communication (C), surveillance (S), and others (O). A satellite can serve multiple purposes; however a satellite serving either B, or C, or S does not serve O. 

The following facts are known about the satellites: 

1. The numbers of satellites serving B, C, and S (though may be not exclusively) are in the ratio 2: 1:1. 

2. The number of satellites serving all three of B, C, and S is 100. 

3. The number of satellites exclusively serving C is the same as the number of satellites exclusively serving S. This number is 30% of the number of satellites exclusively serving B. 

4. The number of satellites serving O is the same as the number of satellites serving both C and S but not B. 

Question:

 If the number of satellites serving at least two among B, C, and S is 1200, which of the following MUST be FALSE? 

Option: 1

The number of satellites serving C cannot be uniquely determined 

 


Option: 2

The number of satellites serving B is more than 1000 
 


Option: 3

All 1600 satellites serve B or C or S 

 


Option: 4

The number of satellites serving B exclusively is exactly 250 


2839155 is divisible by

Option: 1

2


Option: 2

7


Option: 3

55


Option: 4

None of the above


'a' for which x^{2}-ax+9= 0 can be written as square of a linear factor is

Option: 1

6


Option: 2

-6,6


Option: 3

\left ( 6,\infty \right )


Option: 4

\left ( -\infty,-6 \right )


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