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Based on the CAT syllabus 2024, we have created a preparation strategy to ace the CAT Exam. We have covered a strategy for every single day up to 10 days. In the previous article, we discussed the CAT Exam strategy on how to Solve the problems involving Simple Interest and Compound Interest, Blood relations, and tenses (Part 1) on Day 10 of CAT preparation.
We're back with a strategy for Day 11 of our CAT preparation for CAT 2024. In this article, we will be discussing strategies for the following topics, including simple interest instalment questions and common CAT questions.
Follow the 60-day CAT exam preparation schedule we prepared for you to get a flow, plan, and schedule for your preparation.
Loans and instalments are key topics in financial mathematics and an essential tool to borrow money for various purposes, such as purchasing a home, financing education, or expanding a business.
When you take a loan from an agency and return it in parts after regular intervals. The amount returned at regular intervals is an instalment.
CAT Questions on Instalments and CAT Questions on Loans are categorised based on whether the interest rate is Simple Interest or Compound Interest .
We need to have a clear idea about how to calculate the Simple Interest or Compound Interest of a sum of money.
Simple interest = (Principal × Rate × Time) / 100
Compound interest = Principal × [1 + (Rate / 100)]Time – Principal
Suppose Anil purchased a television worth Rs. 18000 paying Rs. 10000 cash down payment and every month a fixed instalment has to be paid for the next 6 months where interest is charged at 10% per month on simple interest.
You need to calculate the value of EMI.
First, you need to calculate debt (Amount due after 6 months if paid in a single time)
Principal = 18000 – 10000 = Rs. 8000
Debt = 8000 + (8000 × 10 × 6)/100 = Rs. 12800
First instalment after 1st month = Rs. 100x (Let)
Amount due after 1 month = Rs. 12800 – 100x – 100x × 5 × 10/100 = Rs. 12800 – 150x
(Instalment amount and Interest for 5 months have to be subtracted from the amount due since 100x is returned after one month and interest is added for 6 months in the original amount due)
Amount due after 2 months = Rs. 12800 – 150x – 100x – 100x × 4 × 10/100
= Rs. 12800 – 290x
(Instalment amount and Interest for 4 months have to be subtracted from the amount due since 100x is returned after two months and interest is added for 6 months in the original amount due)
Amount due after 3 months = Rs. 12800 – 290x – 100x – 100x × 3 × 10/100
= Rs. 12800 – 420x
(Instalment amount and Interest for 3 months have to be subtracted from the amount due since 100x is returned after three months and interest is added for 6 months in the original amount due)
Amount due after 4 months = Rs. 12800 – 420x – 100x – 100x × 2 × 10/100
= Rs. 12800 – 540x
(Instalment amount and Interest for 2 months have to be subtracted from the amount due since 100x is returned after four months and interest is added for 6 months in the original amount due)
Amount due after 5 months = Rs. 12800 – 540x – 100x – 100x × 1 × 10/100
= Rs. 12800 – 650x
(Instalment amount and Interest for 1 month have to be subtracted from the amount due since 100x is returned after five months and interest is added for 6 months in the original amount due)
Amount due after 6 months = Rs. 12800 – 650x – 100x
(The instalment amount has to be subtracted from the amount but interest is not subtracted since 100x is returned after six months and interest is added for 6 months in the original amount due)
After payment of all instalments, the amount due = 0
So, Rs. 12800 – 650x – 100x = 0
⇒ x = 17.067
⇒ 100x = Rs. 1706.7
To find the value of the annual instalment with Simple Interest , we use the following formula:
Annual instalment = 100A / 100T + [RT(T – 1)/2]
Where A is the total amount to be paid in T years with R% annual interest.
Let a person take a loan from an agency at r% per annum compounded annually and pay the loan in equal instalments for n years.
Then, the value of each instalment can be calculated by the given formula:
Amount due after n years = P (1 + r/100)n
If paid in instalments, the amount due must be equal to
P (1 + r/100)n = X (1 + r/100)n-1 + X (1 + r/100)n – 2 + X (1 + r/100)n – 3 +…. + X (1 + r/100)
Where, X = Instalment value
Questions and MCQs on Loans and advances and CAT questions on Installments (SI and CI) can be divided into sub-categories during CAT preparation:
Questions that involve calculations of instalment value.
Questions that involve calculations of the rate of interest charged.
Questions that involve calculations of debt.
We have to further study topics like “instalment loans for bad credit”, “instalment loan calculator”, and “loan instalment payment” to delve deeper into this chapter. Now we will practice some instalment loan example questions to understand the topic better.
Question 1. John borrowed Rs. 2,10,000 from a bank at an interest rate of 10% per annum, compounded annually. The loan was repaid in two equal instalments, the first after one year and the second after another year. The first instalment was the interest of one year plus part of the principal amount, while the second was the rest of the principal amount plus due interest thereon. Then each instalment, in Rs., is:
[CAT Question Paper 2018, TITA]
Rs. 121000 (Correct answer)
Rs. 100000
Rs. 120000
Rs. 125000
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Solution:
P = 210000, n = 2, r = 10
Let X be the value of the instalment each year.
Using,
P (1 + r/100)n = X (1 + r/100)n-1 + X (1 + r/100)n-2 + X (1 + r/100)n-3 +….+ X (1 + r/100)
⇒ 210000(1 + 10/100)2 = X (1 + 10/100)2-1 + X (1 + 10/100)2-2
⇒ 210000(121/100) = X (11/10) + X
⇒ 2100 × 121 = X (21/10)
∴ X = 121000
Hence, the correct answer is Rs. 121000.
Question 2. Rahul takes a loan of Rs 150000 at an interest rate of 20% compound interest, which is compounded annually. He agrees to pay three equal instalments in three years, one instalment at the end of every year. Find the value of each instalment.
[CAT Question Paper - sample paper]
Rs. 71209 (Correct answer)
Rs. 68349
Rs. 76484
Rs. 72904
Solution:
P = 150000, n = 3, r = 20
Let X be the value of the instalment each year.
Using,
P (1 + r/100)n = X (1 + r/100)n-1 + X (1 + r/100)n-2 + X (1 + r/100)n-3+….+ X (1 + r/100)
⇒ 150000(1 + 20/100)3 = X (1 + 20/100)3-1 + X (1 + 20/100)3-2 + X (1 + 20/100)3-3
⇒ 150000(216/125) = X (36/25) + X(6/5) + X
⇒ 150000(216/125) = X (91/25)
∴ X = 71209
Hence, the correct answer is Rs. 71209.
Question 3: What is the amount (in INR) of debt that will be discharged in 6 equal instalments of INR 800 each, if the debt is due in 6 years at 5% per annum?
[CAT Question Paper - sample paper]
Rs. 6600
Rs. 7500
Rs. 8000
Rs. 5400 (Correct answer)
Solution:
Given:
Installment = INR 800
Rate, r = 5%
Time, t = 6 years
Let the debt be x.
Instalment = (Debt × 100) / [100t + {r × t(t-1)} / 2]
⇒ 800 = 100x / [100 × 6 + {5 × 6(6-1)}/2]
⇒ 800 = 100x / 675
∴ x = 5400
Hence, the correct answer is Rs. 5400.
To prepare this topic for the CAT exam, students must know of
Fractions and percentages on fingertips.
Successive Changes
References to Study (Theory)
Quantitative Aptitude for CAT by N K Sinha
Dinesh Miglani Tutorials for CAT IPM CLAT SSC BANK
References to Study (Practice)
Arun Sharma: A Quantitative Approach for CAT (7th Edition)
https://iim-cat-questions-answers.2iim.com
Ranking is the process of determining the position or place of a person or thing based on comparison and other information given in the questions for the CAT exam.
It is one of the most important parts of Logical Reasoning for the CAT exam.
For some information about this topic, students can study “Ranking logical reasoning pdf”, “order and ranking Logical Reasoning ” and “Ranking logical reasoning questions”.
There are many different types of questions asked in the CAT exam based on ranking.
Some of them are:
The position/Ranking of the person is asked from the bottom/left/right/top.
Questions based on swapping of positions.
Questions are based on the number of persons between two positions.
Questions based on finding the total number of objects or persons.
A total number of persons in a row = (sum of positions of the same person from both sides) – 1
Example: Sunil is 16th from either end of a row; the total number of persons in the row = 16 + 16 - 1 = 31
If the position of a person/ object from one end is n, and the total number of persons/objects in the row is m; then the position of the same person from the other end will be (m - n + 1).
While calculating the number of places between two persons, cases of overlapping and non-overlapping should be treated differently.
Analyse the given information in the question by thorough reading.
Use visualisation/imagination skills.
Try to draw all the possibilities and eliminate the wrong one.
These questions can help you build the concept of ranking: (Based on the CAT exam):
Question 1. In a queue, Antara is 19th from the front while Manthara is 28th from behind and Lolita is just in the middle of the two. Consider that there are 50 people in the queue. What position does Lolita occupy from the front? [CAT sample paper]
20th
19th
18th
21st (Correct answer)
Solution:
Total persons sitting between Antara and Manthara = 50 – 19 – 28 = 3
Lolita is in the middle of the two; So, Antara and Lolita have just 1 person between them. Therefore, Lolita must be at 21st from the front.
Question 2. In a row of boys, Ritesh and Manish occupy the 7th place from the right end and 9th place from the left end, respectively. Now if they interchange their places, Ritesh and Manish occupy 25th place from the right and 27th place from the left, respectively. How many boys are present in the row?
35
26
33 (Correct answer)
Cannot be determined
Solution:
Ritesh's Position from the right end = 7; Now Manish occupies the position of Ritesh which is 27th from the left.
So, total number of boys = 7 + 27 – 1 = 33
Question 3: Five friends, A, B, C, D, and E, are sitting in a row facing north. A is to the immediate right of B and immediate left of C. D is to the immediate right of E and immediate left of B. Who is sitting in the middle?
A
B
C
D
Solution:
From the given conditions:
A is immediately right of B → B, A, C (because A is immediately left of C)
D is immediately right of E and immediately left of B → E, D, B, A, C.
Therefore, B is in the middle.
Question 4: In a class of 40 students, there are 10 boys and 30 girls. Ramesh is ranked 12th when students are arranged in descending order of marks. Among the boys, he is ranked 7th. How many girls are ranked above him?
4
5
6
7
Solution:
Ramesh is ranked 12th overall, and 7th among the boys.
So, there are 6 boys ranked higher than him.
Therefore, the number of girls ranked above him is 11 - 6 = 5
To Prepare the questions based on Ranking for CAT 2024, a student must know of:
Basic Additions and subtractions
Sequence and Series
References to Study (Theory):
Verbal and Non-Verbal Reasoning by R S Aggarwal.
2IIM CAT Preparation (YouTube Channel)
References to Study (Practice):
Verbal and Non-Verbal Reasoning by R S Aggarwal. (Basic)
LRDI for CAT and GMAT by Nishit K Sinha. (Advance)
CAT previous year papers and CAT sample paper
As discussed in the previous article, tenses are divided into three types for easy CAT preparation. Today we are going to discuss, Past Tense.
Past tense is used to describe the event that has occurred in the Past.
Past Tense can further be divided into four categories to indicate the action as follows:
Simple Past Tense/ Past Indefinite Tenses: A habitual action in the past. The action has already finished in the past but the time of action is not definite.
Formula: Subject + Verb (Past tense) + Object
Example: Geetha studied at IIM Ahmedabad.
Past Perfect Tense: It refers to an action that happened before another event.
Formula: Subject + Had + Verb (Past participle) + Object
Example: Kushal noticed that Barsha had left his mobile behind.
Past Continuous Tense: Continuous action in the past, that happened for some time.
Formula: Subject + Was/ Were + Verb (Present participle) + Object
Example: Sneha was eating pizza.
Past Perfect Continuous Tense: denotes an action that was in progress before another event in the past.
Formula: Subject + Had been + Verb (Present participle) + Object
Example: I had been preparing for this examination for five months.
Students can practice on simple past tense worksheets and read simple past tense formulas to get more grasp on the basic past tense examples.
Question 1. I met the director yesterday, and he assured me that he will help if you will ask him. [Sentence correction]
[CAT previous year papers]
have met the director yesterday, and he assured me that he will help if you ask him.
met the director yesterday, and he assured me that he would help if you asked him.
met the director yesterday, and he assured me that he would help if you asked him.
No correction required
Solution:
The correct answer is Option B.
With ‘yesterday’, the Past indefinite tense should be used. So, option A is incorrect.
Option (c) is wrong because in “he will help if you will ask him”, the verb 'will help' is in the future, which is the result of a condition ‘if you will ask’ and both cannot be in the future.
Question 2. The Chief Proctor______into the classroom to see what the students_________. [Fill in the blanks]
Go, had been doing
Went, was doing
Gone, had been doing
Went, were doing
Solution:
The correct answer is option D.
Past indefinite with past continuous tense (For progressive work) is to be used.
Option A is wrong because “The chief proctor” is singular. So “goes” is appropriate or the past form.
Option B is wrong because “students” is plural, so “were doing” should be appropriate.
Option C is wrong because the past participle form of a verb alone can’t be used. There has to be a has/have/had.
Basic Knowledge of Verbs and their forms.
Knowledge of the use of helping verbs (Was/Were/had/had been)
Knowledge of Nouns/Pronouns.
Learn the rules of all types of past tenses.
Read good Newspapers which use correct grammar (like The Hindu).
Do basic exercises on Past tense.
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)
Class (VI-VIII) NCERT for basic grammar rules.
References to Study (Practice):
engvid.com (Web)
Wren and Martin (sixth edition)
Practice CAT Sample Papers
300+ Phrasal Verbs List for CAT Exam, Types With Examples & Practice Questions | CAT Quantitative Aptitude Questions with Answers PDF |
Do practice, be focused, and wait for the CAT strategy to prepare for day 12 (Practice Set-3) tomorrow.
Thank You
All the best.
With a 59.95 percentile in CAT 2024 and ST category, you can expect calls from newer IIMs like IIM Bodh Gaya, IIM Jammu, and IIM Sirmaur, as they have lower cutoffs for reserved categories. Non-IIM options like IIT Madras (MBA), NIT Trichy (MBA), and state universities like Delhi School of Economics (DSE) might also consider your profile. Apply to institutions that prioritize diversity and offer ST reservation. Ensure your application highlights strong academics and achievements.
For more details you can visit the link given below
https://bschool.careers360.com/cat-percentile-predictor
Hi,
Based on the previous year analysis, According to your CAT 2024 percentile some of the best colleges offering MBA and PGDM course in Telangana in which you have chances to get a seat are the following
For more information about the colleges in which you have chances to get a seat you can predict using MBA college predictor tool provided below
https://bschool.careers360.com/cat-college-predictor
Hope this information will help you
Hi,
With a CAT 2024 score of 93.94 percentile, you have a good chance of getting calls from several IIMs. Here are some possibilities:
IIM Jammu
IIM Bodhgaya
IIM Udaipur
IIM Kashipur
IIM Vizag
Apart from IIMs, you can also consider other prestigious B-schools like:
Management Development Institute (MDI) Gurgaon
FMS Delhi
IIT Delhi
IIM Lucknow
IIM Indore
IIM Raipur
CAT exam is conducted every year for purpose of admission to various prestigious business school and management institutes in India. The exam is also considered among toughest entrance exams in India. The exam rats the logical skills of the candidates. You can get the college list based on your CAT score by simply visiting CAT College Predictor 2024
Hi Sonu,
Preparing for CAT 2025 through self-study requires the right study materials, a structured plan, and consistent effort. CAT Syllabus comprises of Quantitative Aptitude (QA), Data Interpretation and Logical Reasoning (DILR), Verbal Ability and Reading Comprehension (VARC).
You can get more detailed information in the mentioned website of Careers360, it will be helpful enough for preparation of CAT 2025.
If looking for online sources, you can go through few channels on YouTube like- Study Buzz, Takshzila, and Career Launcher. Apps like unacademy and Byju's can help as well.
All the best for your CAT preparation.
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