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In our previous article, we covered the CAT Exam strategy for preparing profit and loss, Data Interpretation (Miscellaneous), and improving reading skills for Day 9 of your CAT preparation. We also included tips on tackling Simple Interest and Compound Interest questions.
Now, on Day 10 of our CAT 2024 preparation series, we’ll be focusing on strategies for Simple Interest and Compound Interest questions, along with useful concepts and tricks.
Stick to our 60-day CAT exam preparation schedule to stay organized and on track. Simple Interest and Compound Interest questions frequently appear on the exam, and many students struggle with them. We've put together a guide to help you master these types of questions and improve your skills for the CAT.
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Simple Interest and Compound Interest are two of the most basic concepts in mathematics, here we will discuss, what is simple interest and compound interest, simple interest and compound interest for cat, simple interest and compound interest formulas, the difference between simple interest and compound interest formulas, simple interest and compound interest questions etc.
Simple interest is defined as the interest that is calculated on the principal amount only, it does not take into account the interest of interest.
For example, if you give your friend Rs. 1000, after 3 years he returned Rs. 1300.
You have received Rs. 300 more. This Rs. 300 is the simple interest for 3 years at the rate of 10% per annum.
The simple interest (SI) is calculated by multiplying the principal with the rate of interest and time (in years). The formula is:
SI = (P × R × 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 or deposited)
Alternatively,
Calculate the interest for 1 year and multiply it by the time for which interest is to be calculated.
Compound interest is the most common interest type that we come across in our daily lives. It depends on both the principal and the total interest gathered before. When calculating the compound interest we add the previous interest amount with the principal and take that sum as the new principal.
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.
Principal = Rs. 1000
Year - Wise Interest
1st year: 20% of 1000 = 200
2nd year: 20% of (1000 + 200) = 200 + 40 = 240
3rd year: 20% of (1200 + 240) = 240 + 48 = 288
Total Interest for 3 years = 200 + 240 + 288 = Rs 728.
Alternatively, we can use the formula
A = P×(1 + R/100)n
Where,
A = Amount
P = Principal
R = Rate of interest per annum compounded annually
n = Number 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. or we can use a general formula of compound interest:
A = P(1+r/n)nt, where A = amount, P = principal, r = rate of interest in decimal, t = time in years, n = number of times interest is compounded in a year.
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 are given).
Questions that involve calculations of compound interest, such as if the rate is compounded annually, half-yearly, monthly, or quarterly.
Amount and Principal are given; Time or rate will be asked.
Questions based on the difference between SI and CI.
Q.1.
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. 76,000 then the amount (in Rs. lakh) invested in the fixed deposit was [CAT Question Paper 2019, TITA] (Simple interest CAT questions)
9 lakh
10 lakh
9.5 lakh
8 lakh
Answer: (1) 9 lakh
Solution:
Let's say the 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
⇒ 90000 – 18x + 8x + 3x = 76000
⇒ x = 2000
Therefore, the amount deposited in a fixed deposit = 1500000 – 600000 = 900000 = 9 lakh
Hence, the correct answer is option (1).
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]
6000
7250
6350
7000
Answer: (2) 7250
Solution:
Ratio of interest of Amala, Bina, and Gouri = (3 × 6) : (4 × 5) : (5 × 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 × 250 = 7250
Hence, the correct answer is option (2).
Q.3.
A sum was doubled with a 12.5% rate of simple interest per annum. The time taken for that sum to be doubled is:
8 (½) years
8 years
12 years
12 (½) years
Answer: (2) 8 years
Solution:
Let the principal be P.
Sum = 2P
Let the time be T.
Therefore, Simple interest = Amount – Principal = 2P – P = P
We know, Simple interest = (Principal × Rate × Time) / 100
⇒ T = (P × 100) / (P × 12.5)
⇒ T = 1000 / 125
So, T = 8 years
Hence, the correct answer is option (2).
Q.4.
A sum of money becomes 1.331 times in 3 years as compound interest. The rate of interest is:
8%
7.5%
10%
50%
Answer: (3) 10%
Solution:
Assuming the principal is Rs. 1000, the amount will be Rs. 1331.
When compounded annually, A = P×(1 + R/100)T, where A is the total amount, P is the principal amount, R is the rate of interest per annum, and T is the time in years.
So, 1331 = 1000(1 + R/100)3
⇒ 1331/1000 = (1 + R/100)3
⇒(11/10)3=(1 + R/100)3
⇒ 11/10 = 1 + R/100
⇒ R/100 = 1/10
⇒ R = 10%
Hence, the correct answer is option (3).
Q.5.
B borrows Rs. 5000 from A at 6% p.a. simple interest and lends it to C at compound interest of 10% p.a. If B collects the money back from C after 2 years and repays A, the profit made by B in the transaction is ______.
Rs. 1050
Rs. 450
Rs. 600
Rs. 500
Answer: (2) 450
Solution:
At Simple Interest, B borrows from A.
Principal = Rs. 5000
Rate = 6%
Time = 2 years
At Compound Interest, B lends to C.
Principal, P = Rs. 5000
Time, n = 2 years
Rate, R = 10%
We know,
Simple interest = (P× R × T)/100
Total amount = P×(1 + R/100)n
Simple interest = (5000 × 2 × 6)/100 = Rs. 600
Total amount to be paid back to A = 5000 + 600 = Rs. 5600
B lends to C at Compound interest.
Total amount = 5000(1 + 10/100)2 = 5000 × 1.21= Rs. 6050
So, the profit made by B = Rs. 6050 – Rs. 5600 = Rs. 450
Hence, the correct answer is option (2).
Fractions and percentages on their fingertips.
Vedic Maths (Simplification and Approximation)
Ratios
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.
Quantitative Aptitude for CAT by N K Sinha
2iim Online Learning Classroom
Arun Sharma: A Quantitative Approach for CAT (6th Edition)
https://insideiim.com/best-resources-cat-exam-preparation
CAT's previous year's papers
Blood relation is one of the most important parts of LR. A blood relationship is defined as any relationship formed by birth or marriage. Here we will discuss blood relation in logical reasoning, types of blood relation in logical reasoning, what is blood relation in logical reasoning, blood relation in logical reasoning questions etc. Let us start with the types of blood relations:
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.
Direct Questions/ Single statement based: Relation between two persons is given indirectly and you have to find the correct relationship.
Puzzled Relation: A set of information is given about the relations, professions, places etc. Using that information, answers have to be determined.
Coded Blood Relation: Relationships in the form of codes are given. For example, A @B means A is the father of B. A#B means B is the father of A etc.
Relationships of mixed blood: Relations of two or more families are involved.
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.
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, and A is 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, one of which never got married. There are only three generations in the family.
Q.1.
How is F related to A?
Mother
Sister-in-law
Sister
Daughter
None of these
Ans: (4) Daughter
Q.2.
Who is an unmarried member of the second generation?
C
G
H
Cannot be determined
None of these
Ans: (1) C
Solution:
G (male, since he had a wife who died long ago) is the 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)
Q.3.
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?
D
B
C
A
Answer: (1) D
Solution:
A * B means B is the 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 the father in the family
D is the father of B and C, and B is the mother of A.
Hence, option 1 is correct.
D
B
C
A
Answer: (1) D
Solution:
A # B means B is the 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 the father in the family
D is the father of B and C, and B is the mother of A.
Hence, option 1 is correct.
To Prepare for Blood Relations, students must have the knowledge of:
Basic family relations
Generation gaps
Relations of in-laws
Basic knowledge of coding
LRDI for CAT and GMAT by Nishit K. Sinha
‘www.catking.in (Web as well as YouTube Channel)
Verbal and Non-Verbal Reasoning by R. S. Aggarwal.
CAT's previous year's papers
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.
Here we will discuss tense in English grammar, present tense exercises, present tense examples, present tense worksheets etc. 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
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.
Q.1.
Prem Chand ……… novels that are appealing to people of all ages.
Wrote
Had written
Had been writing
Has written
Answer: (4) Has written
Explanation: The work is done but its effect is still present as people still appreciate his novels.
Q.2.
Roji, I ……… seen you for a long time, how ………?
Had not, are you
Have not, have you been
Did not, had you been
Have not, are you been
Answer: (2) Have not, have you been
Explanation: Not seeing Roji, is the action that has been completed in the present time.
Q.3.
She ……… theatre dramas. ……… any recent play?
Loves watching, have you watched
Love to watching, did you watched
Is loving, have you been watching
Loves watching, had you seen
Answer: (1) Loves watching, have you watched
Explanation: ‘Watching dramas’ is the continuous action in present time
With the present indefinite, past perfect cannot be used. So, (4) is wrong and (1) is correct.
Q.4.
Naina and Palak ……… to our house to play the indoor games with us.
Will have been coming
Had been to come
Are coming
Come
Answer: (3) Are Coming
Explanation: ‘Are coming’ is the correct answer as it describes the expected event in the near future.
Basic knowledge of verbs and helping verbs.
Basic knowledge of parts of speech.
Learn the rules of all types of present tenses.
Read newspaper articles.
Practice error-based questions on tenses.
Attempt Mock-Tests.
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)
engvid.com (Web)
Oxford Practice Grammar (sixth edition)
Practice on sample question papers.
The formula for simple interest, SI = (P × R × T) / 100
Where, P = Principal Sum, R = rate of interest at which sum is borrowed or lent, and T = time period (the duration for which money is borrowed or deposited).
The formula for compound interest, A = P×(1 + R/100)^n
Where, A = Amount, P = Principal, R = Rate of interest per annum compounded annually, and n = Number of years.
If you are lending money to someone then compound interest is better as it can give more earnings, but if you are borrowing money from someone then simple interest is better as you have to pay less in interest..
Blood relation in logical reasoning involves finding relationships between individuals based on given information. These questions test your ability to analyse and deduce relationships like parent, sibling, grandparent, cousin etc.
There are many approaches we can take to solve blood relation problems, these are:
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.
The present tense can be divided into four categories: simple present or present indefinite, present continuous, present perfect, and present perfect continuous.
The National Academy of Legal Study & Research (NALSAR) University of Law in Hyderabad has 147 seats, with 25% of seats reserved for Telangana state candidates. There is no reservation for this category in central list so you can claim only for your state.so whatever serial no. Is provided in clat guidelines you should follow that only and don't worry this is just a procedure when you get selected you just need to submit the caste certificate only.
Hey there! Welcome to the Careers360 team. That's quite a specific situation you've got there - let me see if I can help break it down for you.
So, you're from Telangana, did your MBBS in AP, and now you're wondering about your status in AP, right? It's a bit of a tricky one, to be honest. The local status and reservation policies can get pretty complicated, especially when you're crossing state lines.
From what I understand, your local status in AP might be a bit dicey since you're originally from Telangana. As for the BC-D reservation, that's even trickier because each state has its own list and criteria.
Here's what I think, but take it with a grain of salt:
1. Your local status in AP: This might depend on how long you've been in AP and if you meet their residency requirements. You'd need to check the specific rules for AP.
2. BC-D status in AP: Even if you get local status, your BC-D certificate from Telangana might not directly apply in AP. Each state has its own backward classes list.
3. Open category: If neither of the above works out, you might indeed have to go for the open category seats in AP.
But listen, don't take my word as gospel. These rules can be super complex and change often. Your best bet would be to check with the AP medical education department or maybe the AP Public Service Commission. They'll have the most up-to-date info.
Also, why not chat with some of the seniors here at Careers360? They might have dealt with similar cases before and could have some insider tips. You can also have a look at our College Predictor for more details.
Let me know if you want to bounce around some ideas on how to get more concrete info on this. We could make it a little project - might be useful for other students too!
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