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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.
CAT 2025: VARC, DILR, and Quant: MCQs & Weightages | Chapter-wise MCQs
CAT 2025 Study Material: VARC | Quantitative Aptitude | 60 Days Study Material by Experts
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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.
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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
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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 Percentage on their fingertips.
Vedic Maths (Simplification and Approximation)
Ratios
Use the concept of fractions and Percentage 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 Relation, 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 CUSAT CAT previous year question papers are available on the Careers360 website. You can find question papers from 2012 to 2023, which can be downloaded in PDF format HERE
Additionally, the official website of Cochin University of Science and Technology (CUSAT) also provides previous year question papers. To access them, you can follow these steps:
- Visit the CUSAT official website - admissions.cusat.ac.in.
- Click on the resources tab from the homepage.
- Select the previous year's question papers from the drop-down menu.
- Select the Common Admission Test (CAT) question papers link.
- Now click on the B.Tech course.
By practicing with these previous year question papers, you can get familiar with the exam pattern, identify important topics, and improve your time management skills.
Hey Shathvika,
Let's dive deep into MBA Entrance Exams (Other than CAT)
1. XAT (Xavier Aptitude Test)
Conducted by: XLRI, Jamshedpur
Eligibility: Bachelor’s degree in any discipline.
Exam Pattern:
- Sections: Decision Making, Verbal & Logical Ability, Quantitative Ability & Data Interpretation, and General Knowledge.
- Duration: 3 hours.
- Marks: No negative marking for General Knowledge.
Key Highlights:
- The Decision-Making section tests analytical and situational judgment skills.
- General Knowledge is evaluated during interviews, not for percentile calculation.
Official Website: https://xatonline.in
---
2. SNAP (Symbiosis National Aptitude Test)
Conducted by: Symbiosis International (Deemed) University
Eligibility: Bachelor’s degree with 50% marks (45% for reserved categories).
Exam Pattern:
- Sections: General English, Quantitative, Data Interpretation & Data Sufficiency, and Analytical & Logical Reasoning.
- Duration: 1 hour.
- Marks: Total 60 marks (MCQs).
Key Highlights:
- Specifically for admission to Symbiosis institutes like SIBM Pune and SCMHRD.
- Easy-to-moderate difficulty level.
Official Website: https://snaptest.org
---
3. CMAT (Common Management Admission Test)
Conducted by: National Testing Agency (NTA)
Eligibility: Bachelor’s degree in any discipline.
Exam Pattern:
- Sections: Quantitative Techniques & Data Interpretation, Logical Reasoning, Language Comprehension, General Awareness, and Innovation & Entrepreneurship.
- Duration: 3 hours.
- Marks: 400 marks.
Key Highlights:
- Accepted by over 1,000 AICTE-approved institutes.
- Includes an optional Innovation & Entrepreneurship section.
Official Website: https://cmat.nta.nic.in
---
4. MAT (Management Aptitude Test)
Conducted by: All India Management Association (AIMA)
Eligibility: Bachelor’s degree in any discipline.
Exam Pattern:
- Sections: Language Comprehension, Mathematical Skills, Data Analysis & Sufficiency, Intelligence & Critical Reasoning, and Indian & Global Environment.
- Duration: 2.5 hours.
- Marks: 200 marks.
Key Highlights:
- Held multiple times a year in PBT, CBT, and IBT modes.
- Accepted by more than 600 MBA colleges in India.
Official Website: https://mat.aima.in
---
5. NMAT (NMIMS Management Aptitude Test)
Conducted by: Graduate Management Admission Council (GMAC)
Eligibility: Bachelor’s degree with 50% marks.
Exam Pattern:
- Sections: Language Skills, Quantitative Skills, and Logical Reasoning.
- Duration: 2 hours.
- Marks: 360 marks.
Key Highlights:
- Allows three attempts, with the best score considered.
- Accepted by NMIMS and partner universities worldwide.
Official Website: https://www.mba.com/exams/nmat
---
6. IIFT (Indian Institute of Foreign Trade)
Conducted by: National Testing Agency (NTA)
Eligibility: Bachelor’s degree (final-year students can also apply).
Exam Pattern:
- Sections: Quantitative Analysis, Reading Comprehension & Verbal Ability, Logical Reasoning & Data Interpretation, and General Knowledge.
- Duration: 2 hours.
- Marks: 300 marks.
Key Highlights:
- Specifically for IIFT’s flagship MBA in International Business.
- General Knowledge plays a significant role in shortlisting.
Official Website: https://iift.nta.nic.in
---
7. TISSNET (Tata Institute of Social Sciences National Entrance Test)
Conducted by: Tata Institute of Social Sciences
Eligibility: Bachelor’s degree.
Exam Pattern:
- Sections: English Proficiency, Mathematics & Logical Reasoning, and General Awareness.
- Duration: 100 minutes.
- Marks: 100 marks.
Key Highlights:
- Focused on social sciences, HRM, and public policy programs.
- General Awareness is crucial (with emphasis on current affairs).
Official Website: https://admissions.tiss.edu
---
8. MICAT (MICA Aptitude Test)
Conducted by: MICA, Ahmedabad
Eligibility: Bachelor’s degree and a valid CAT/XAT/GMAT score.
Exam Pattern:
- Sections: Psychometric Test, Verbal Ability, Quantitative Ability, General Awareness, Divergent-Convergent Thinking, and Descriptive Test.
- Duration: 2.5 hours.
Key Highlights:
- Psychometric Test is a qualifying section.
- Specifically for MICA’s flagship PGDM-C program in Strategic Marketing and Communications.
Official Website: https://www.mica.ac.in
---
9. GMAT (Graduate Management Admission Test)
Conducted by: Graduate Management Admission Council (GMAC)
Eligibility: No specific eligibility; bachelor’s degree recommended.
Exam Pattern:
- Sections: Analytical Writing, Integrated Reasoning, Quantitative Reasoning, and Verbal Reasoning.
- Duration: 3 hours 7 minutes.
- Marks: 800 (scaled score).
Key Highlights:
- Globally recognized for MBA programs.
- Popular for Indian B-schools like ISB, SPJIMR, and Great Lakes.
Official Website: https://www.mba.com
---
10. MAH-CET (Maharashtra Common Entrance Test)
Conducted by: Maharashtra State CET Cell
Eligibility: Bachelor’s degree with a minimum of 50% marks (45% for reserved categories).
Exam Pattern:
- Sections: Logical Reasoning, Abstract Reasoning, Quantitative Aptitude, and Verbal Ability & Reading Comprehension.
- Duration: 2.5 hours.
- Marks: 200 marks (MCQs).
Key Highlights:
- Accepted by top Maharashtra B-schools like JBIMS, SIMSREE, and PUMBA.
- Known for its speed-intensive nature with 200 questions in 150 minutes.
Official Website: https://cetcell.mahacet.org
Let me know if you have any doubts regarding a specific exam or any other query.
Have a nice day !!
Hello Ayush,
K.R. Mangalam University utilizes a blend of MCQs, descriptive formats, and practical assessments to evaluate student performance. The continuous evaluation system ensures that students are assessed regularly throughout the semester, contributing to a more comprehensive understanding of their academic progress.
Hello,
Here are some simple tips to prepare for the CUSAT CAT exam:
1. Focus on Physics, Chemistry, and Maths (PCM).
2. Give equal time to all subjects.
3. Use NCERT Books as they are best for basics.
You can refer to following study materials for better practice :-
Hope it helps !
Hello there,
Yes, you can apply for CAT examination after completion of Doctor of Pharmacy (Pharm D) .
The Common Admission Test (CAT) has no restrictions regarding your educational background thus allowing you to submit your application following your completion of a Pharm. D degree.
The Common Admission Test permits candidates to take the exam after completing any undergraduate degree without any restrictions to the area of study. The professional doctoral degree of Pharm. D (Doctor of Pharmacy) functions as an equivalent to bachelor's level for CAT eligibility recognition.
Therefore, Candidates who received their Pharm. D degree can pursue the CAT exam application process based on their qualification standards.
Hope this will help!
A career as Marketing Director is also known as a marketing expert who is responsible for the overall marketing aspect of the company. He or she oversees plans and develops the company's budget. The marketing Director collaborates with the business team to plan and develop the marketing and branding strategies for the company's products or services.
A Business Development Executive (BDE) is a professional responsible for identifying growth opportunities and fostering strategic partnerships to enhance a company's market position. Typically, a BDE conducts market research, analyses industry trends, and identifies potential clients or business prospects. He or she plays a crucial role in developing and implementing sales strategies to achieve revenue targets.
A BDE often collaborates with cross-functional teams, including marketing and product development, to align business objectives. Strong communication, negotiation, and relationship-building skills are essential for success in this role. BDE strives to expand the company's customer base, drive sales, and contribute to overall organisational growth in a dynamic and competitive business environment.
Content Marketing Specialists are also known as Content Specialists. They are responsible for crafting content, editing and developing it to meet the requirements of digital marketing campaigns. To ensure that the material created is consistent with the overall aims of a digital marketing campaign, content marketing specialists work closely with SEO and digital marketing professionals.
A sales manager is a revenue-generating source for a company. Any organisation or company which sells a commodity or service requires sales to generate revenue. A Sales manager is a professional responsible for supervising the sales team. An Individual as a sales manager works closely with salespeople, assigns sales territories, sets quotas, mentors the members of the sales, assigns sales training, and builds a sales plan.
The Sales Manager work also includes hiring and laying off sales personnel after evaluating his or her work performance. In bigger entities, sales quotas and plans are usually set at the executive level. He or she is responsible for overseeing the set target or quotas met by salespeople or upholding any policy. He or she guides his or her fellow salespeople and allows them to sell.
Individuals who opt for a career as a business analyst look at how a company operates. He or she conducts research and analyses data to improve his or her knowledge about the company. This is required so that an individual can suggest the company strategies for improving their operations and processes.
In a business analyst job role a lot of analysis is done, things are learned from past mistakes and the successful strategies are enhanced further. A business analyst goes through real-world data in order to provide the most feasible solutions to an organisation. Students can pursue Business Analytics to become Business Analysts.
A marketing manager is a person who oversees a company or product marketing. He or she can be in charge of multiple programmes or goods or can be in charge of one product. He or she is enthusiastic, organised, and very diligent in meeting financial constraints. He or she works with other team members to produce advertising campaigns and decides if a new product or service is marketable.
A Marketing manager plans and executes marketing initiatives to create demand for goods and services and increase consumer awareness of them. A marketing manager prevents unauthorised statements and informs the public that the business is doing everything to investigate and fix the line of products. Students can pursue an MBA in Marketing Management courses to become marketing managers.
An SEO Analyst is a web professional who is proficient in the implementation of SEO strategies to target more keywords to improve the reach of the content on search engines. He or she provides support to acquire the goals and success of the client’s campaigns.
Digital marketing is growing, diverse, and is covering a wide variety of career paths. Each job function aids in the development of effective digital marketing strategies and techniques. The aims and objectives of the individuals who opt for a career as a digital marketing executive are similar to those of a marketing professional: to build brand awareness, promote company services or products, and increase conversions. Individuals who opt for a career as Digital Marketing Executives, unlike traditional marketing companies, communicate effectively through suitable technology platforms.
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