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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.
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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
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.
The student cannot join the postgraduate MA program directly in the second year of the MA after completing the MBA.
Universities generally expect students to begin the first year of a masters' program even though they had qualifications at the level of a bachelor's degree. The university's curriculum along with the courses are planned to give an in-depth knowledge of the subjects.
But you could opt for:
Postgraduate Studies:
Research Career: In case research interests you, then you can pursue a Ph.D. in your specific interest.
Specialized Master's Programs: Find any specific master's course that supports the career goal.
Professional Certifications:
Make a professional certification in CFA, CA, or FRM to enhance the professional skills and better opportunities in the career field.
Job Entry via MBA
After gaining an MBA from a renowned institution, it's possible to get entry into the corporate world where the diversity in the career field is assured.
In the end, it would depend on what you would like and what you are particularly interested in. It will be better if you take a suggestion from your academic advisor or career counselor.
Hello Pratik,
If your family income exceeds 8 LPA, it will affect your eligibility for the NC-OBC category under the CAT reservation rules. The NC-OBC category requires that the family income should be below 8 LPA to qualify. If you anticipate that your income will exceed this threshold, you should update your status and notify the CAT authorities .
Here's what you can do:
Email the CAT authorities
: Inform them about the potential change in your income status and request to be considered under the
General
category, if applicable. You should do this before the examination or any further processing, as your eligibility for the OBC category depends on the income criteria.
Documents and Proof
: Make sure you have a valid
OBC certificate
and any relevant documentation regarding your family income, in case they require verification. Also, be aware that if your income exceeds 8 LPA, you might need to apply under the
General
category, as the OBC-NC reservation is no longer applicable.
General Category Consideration : If your application is accepted as General, you will be evaluated based on the General category criteria, including cutoffs and ranking.
To summarize, notifying the CAT authorities is the correct approach to avoid discrepancies later, and if your income is above the threshold, you will be treated as a General candidate for the admissions process.
For more details about CAT exam you can check out an article by Careers360 whose link is given below:
Link: https://bschool.careers360.com/exams/cat
I hope this answer helps you. If you have more queries then feel free to share your questions with us we will be happy to assist you.
Thank you and wishing you all the best for your bright future.
Hi Shreya ,
Having a tattoo on your wrist should not create a problem during the CAT exam as long as it does not contain any content that violates exam rules , such as communication-related symbols , unauthorised messages or any text resembling formulas or answers .
For a safe side , it is recommended :
1. Inform the Invigilators : Let them know about your tattoo during the identification check , so there are no misunderstandings .
2. Follow the Guidelines : Ensure you follow all instructions regarding permissible items and dress code on the exam day .
Hope this helps you .
ALL THE BEST .
To know about this please prefer our college predictor
Hello,
Yes, you can also join IIMs two years after graduation, depending upon the justification in interviews and your performance in entrance exams. If you are not sure about CAT, try those other management exams less hard:
Common Management Admission Test: Easier than CAT; 4-5 months of continuous preparation will suffice.
MAT : Much easier and takes place thrice a year.
SNAP (Symbiosis National Aptitude Test): A bit easier than CAT, apt for Symbiosis Institutes.
Xavier Aptitude Test or XAT : Hence, easier than CAT but the unique decision-making section.
Use exams like CMAT and MAT as a challenge to be competitively prepared. This can be given about 4-5 months, along with a few rounds of mock tests and smart studying.
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