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CAT 2007 Solutions
Page
1
of 
30
 
© www.testfunda.com
Section I1.
 
Note that the price of Darjeeling tea remains constant after the 100
th
day (
n
=100).If the prices of the two varieties of tea become equal before
n
= 100, then100 + 0.1
n
= 89 + 0.15
n
 
∴
 
n
= 220, which is not possible. (Since
n
has been assumed to be less than 100)
∴
The prices of the two varieties will be equal after
n
= 100,i.e., when the price of Darjeeling tea = 100 + 0.1 × 100 = 110
∴
89 + 0.15
n
= 110
∴
 
n
= 1402007 is not a leap year. Number of days till 30
th
April = 31 + 28 + 31 + 30 = 120The prices of the two varieties will be equal on 20
th
May.Hence, option 3.
2.
 
Let 
 f 
(
 x 
) =
 px 
2
+
qx 
+
k 
, where
 p
,
q
and
k 
are integers,
 p,
0
∴
 
 f 
(0) =
k 
= 1
∴
 
 f 
(
 x 
) =
 px 
2
+
qx 
+ 1
 f 
(
 x 
) =
 px 
2
+
qx 
+
k 
 
 f 
’(
 x 
) = 2
 px 
+
q
 
When f’(
 x 
) = 0,
 x 
 
= −
q
/2
 p
= 1
 f 
(x) attains maximum at 
 x 
= 1
∴
 
q
 
= −2
 p
 
 f 
(1) =
 p
+
q
+ 1 = 3
∴
1
–
 
 p
= 3
∴
 
 p
 
= −2
 
∴
 
q
= 4
∴
 
 f 
(
 x 
) = −2
 x 
2
+ 4
 x 
+ 1
∴
 
 f 
(10) =
−200 + 40 + 1 = −159
 Hence, option 2.
 
CAT 2007 Solutions
Page
2
of 
30
 
© www.testfunda.com
3.
P and Q do not lie within the intersection of the two circles.So they lie on the circumferences or outside the circumferences. If they lie on thecircumferences,
∠
AQP = 60
o
From the diagram, if they lie outside the circumferences,
∠
 
AQ’P’ < 60
o
 Also,
∠
AQP would be 0
o
if A, Q and P were collinear.But as P and Q cut each other in two distinct points, A, Q and P cannot be collinear.
∴
 
∠
AQP > 0
o
 
∴
 
∠
AQP lies between
∠
0
o
and
∠
60
o
.Hence, option 3.
4.
 
Enemies of every pair are the pairs formed with all numbers other than the two inthe member itself.
∴
If there are
n
elements then each member has
 
CAT 2007 Solutions
Page
3
of 
30
 
© www.testfunda.com
Hence, option 4.
5.
 
Two members are friends if they have one element in common.
∴
All the members having one constituent as the common element are commonfriends.There are (
n
 
–
3) such friends.Also, one pair formed by the uncommon constituents of the two friends is a commonfriend.
∴
There are
n
 
–
3 + 1 =
n
 
–
2 common friends.Hence, option 4.
6.
 
Let Shabnam have Rs. 100 to invest. Let Rs.
 x 
, Rs.
 y 
and Rs.
 z 
be invested in option A,B and C respectively.
∴
 
 x 
+
 y 
+
 z 
= 100 ... (I)If there is a rise in the stock market, returns = 0.001
 x 
+ 0.05
 y 
 
–
0.025
 z 
 If there is a fall in the stock market, returns = 0.001
 x 
 
–
0.03
 y 
+ 0.02
 z 
 Now, x, y and z are such that regardless of whether the market rises or falls, theygive the same return, which is the maximum guaranteed return.
∴
0.001
 x 
+ 0.05
 y 
 
–
0.025
 z 
= 0.001
 x 
 
–
0.03
 y 
+ 0.02
 z 
 
∴
 
 y 
/
 z 
= 9/16Now, consider different possible values of 
 x 
,
 y 
and
 z 
. The returns are as follows:
 x y z 
Returns = 0.001
 x 
+ 0.05
 y 
 
–
0.025
 z 
 
75 9 16 0.12550 18 32 0.1525 27 48 0.1750 36 64 0.2We see that as the values of 
 y 
and
 z 
increase, the returns increase.
∴
The returns are maximum when
 x 
= 0%,
 y 
= 36% and
 z 
= 64%
of 00

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