Finish Line & Beyond

Comparing Quantities
1. Discount is a reduction given on marked price.
Discount = Marked Price – Sale Price.

2. Discount can be calculated when discount percentage is given.

Discount = Discount % of Marked Price

3. Additional expenses made after buying an article are included in the cost price and
are known as overhead expenses.
CP = Buying price + Overhead expenses

4. Sales tax is charged on the sale of an item by the government and is added to the
Bill Amount.
Sales tax = Tax% of Bill Amount

5. Compound interest is the interest calculated on the previous year’s amount

(A = P + I), where A is the amount, P is principal and I is interest.

6. (i) Amount when interest is compounded annually

R t
A=P(1+ )
100
Where, P is principal, R is rate of interest, t is time period
(ii) Amount when interest is compounded half yearly

R t
A=P(1+ )
200
Where t is number of half years.

Exercise 1

1. Find the ratio of the following.

(a) Speed of a cycle 15 km per hour to the speed of scooter 30 km per hour.

15 1
Answer: Required Ratio = = =1:2
30 2

(b) 5 m to 10 km

5 1
Answer: Required Ratio = = =1:2
10 2
(c) 50 paise to Rs 5

Answer: Rs 5 = 500 paise

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 Finish Line & Beyond

50 1
Ratio = = =1:10
500 10
2. Convert the following ratios to percentages.
(a) 3 : 4

3
Answer: 3:4 =
4
3
On multiplying by 100 you get: × 100 = 75%
4
(b) 2 : 3

2
Answer: 2:3=
3
2 2
On multiplying by 100 you get: × 100 = 66 %
3 3
3. 72% of 25 students are good in mathematics. How many are not good in
mathematics?

Answer: Percentage of Students not good in math = 100-72=28

28
Number of Students not good in Math = 25 × = 7
100

Or, you can calculate as follows also:

72
25 × = 18 Number of Students good in math
100
Number of Students not good in Math = 25-18=7

4. A football team won 10 matches out of the total number of matches they
played. If their win percentage was 40, then how many matches did they
play in all?

Answer: Let us assume total number of matches = x

Then, x × 40% = 10
100
⇒ x = 10 × = 25 is the total number of matches played.
40

Alternate method:
 When the team won 40 matches, number of total match is 100
100
∴ When the team won 1 match, number of total match is
40
100
∴ When the team won 10 matches, number of total match is × 10 = 25
40

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 Finish Line & Beyond

5. If Chameli had Rs 600 left after spending 75% of her money, how much
did she have in the beginning?

Answer: Money left after spending 75% = 100-75 = 25%

Let us assume total money = x

100
Then, x × 25% = 600 ⇒ x = 600 × = 2400
25
Chameli had Rs. 2,400 in the beginning

6. If 60% people in a city like cricket, 30% like football and the remaining
like other games, then what per cent of the people like other games? If the
total number of people are 50 lakh, find the exact number who like each
type of game.

Answer: Cricket Fans=60%

Football Fans = 30%
So, Other Sports’ Fans = 100-(60+30)=10% people like other games.

60
Number of Cricket Fans = 50,00,000 × = 30,00,000
100
30
Number of Football Fans = 50,00,000 × = 15,00,000
100
10
Number of Other Sports Fans = 50,00,000 × = 5,00,000
100

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 Finish Line & Beyond

Exercise 2

1. A man got a 10% increase in his salary. If his new salary is Rs 1,54,000,
find his original salary.

Answer: Let us assume the initial salary =100

So, salary after hike = 100+100 × 10%=100+10=110

 When increased salary is 110, then initial salary is 100

100
∴ When increased salary is 1, the initial salary is
110
100
∴ When increase salary is 154000, the initial salary is × 154000 = 140000
110

Alternate Method:
The question can be solved by assuming x for initial salary, as follows:
110
x× = 154000
100
100
⇒ x = 154000 × = 140000
110

2. On Sunday 845 people went to the Zoo. On Monday only 169 people went.
What is the per cent decrease in the people visiting the Zoo on Monday?

Answer: Actual decrease in number of visits

= 845-169=676
676
Percentage Decrease = × 100 = 80%
845

Alternate method:
 When original number of visitors is 845, the decrease is 676
676
∴ When original number of visitors is 1, the decrease is
845
676
∴ When original number of visitors is 100, the decrease is × 100 = 80%
845
3. A shopkeeper buys 80 articles for Rs 2,400 and sells them for a profit of
16%. Find the selling price of one article.

Answer: Profit = CP × % profit

16
= 2400 × = 384
100
So, SP = CP+Profit
= 2400+384=2784

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 Finish Line & Beyond

2784
SP of one article = = 34.80
80

4. The cost of an article was Rs 15,500. Rs 450 were spent on its repairs. If
it is sold for a profit of 15%, find the selling price of the article.

Answer: CP=Cost+Overheads
=15500+450=15950
Profit = CP × % profit
15
= 15950 × = 2392.50
100
So, SP = CP+Profit
=15950+2392.50=18342.50

5. A VCR and TV were bought for Rs 8,000 each. The shopkeeper made a
loss of 4% on the VCR and a profit of 8% on the TV. Find the gain or loss
percent on the whole transaction.

Answer: Loss on VCR = CP × % Loss

4
= 8000 × = 320
100
Profit on TV = CP × %Profit
8
8000 × = 640
100
Overall Profit = 640-320=320

Pr ofit
Percentage Profit = × 100
CP
320
= × 100 = 2%
16000
6. During a sale, a shop offered a discount of 10% on the marked prices of
all the items. What would a customer have to pay for a pair of jeans marked
at Rs 1450 and two shirts marked at Rs 850 each?

Answer: Total Price of a pair of jeans and two shirts

=1450+2 × 850=3150
Discount = Marked Price × % Discount
10
= 3150 × = 315
100
Effective Price After Discount = 3150-315=2835

7. A milkman sold two of his buffaloes for Rs 20,000 each. On one he made
a gain of 5% and on the other a loss of 10%. Find his overall gain or loss.

Answer: Suppose the CP of each buffalo = 100

After 5% profit, SP = 105

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 Finish Line & Beyond

After 10% loss SP = 90

100
In case of profitable deal, CP = 20000 ×
105
20
= 20000 ×
21
20
Net Profit = 20000 − 20000 ×
21
420000 − 400000 20000
= =
21 21
100
In case of loss making deal, CP = 20000 ×
95
20
= 20000 ×
19
20
Net Loss = = 20000 × − 20000
19
400000 − 380000 20000
= =
19 19
20000 20000
Overall Profit/Loss = −
21 19
380000 − 420000 400000
= = −
399 399
As 399~400, so the net loss is approx. Rs. 1000

8. The price of a TV is Rs 13,000. The sales tax charged on it is at the rate of

12%. Find the amount that Vinod will have to pay if he buys it.

Answer: Sales Tax = Price × Tax Rate

12
= 13000 × = 1560
100
Final Price = 13000+1560 = 14560

9. Arun bought a pair of skates at a sale where the discount given was 20%.
If the amount he pays is Rs 1,600, find the marked price.

100
Answer: Marked Price = × FinalPr ice
100 − Discount
100 100
= × 1600 = × 1600 = 2000
100 − 20 80
Alternate Method:
 When final price is 80, then marked price is 100

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 Finish Line & Beyond

100
∴ When final price is 1, then marked price is
80
100
∴ When final price is 1600, then marked price is = × 1600 = 2000
80

10. I purchased a hair-dryer for Rs 5,400 including 8% VAT. Find the price
before VAT was added.

100
Answer: Price Before VAT = × Final Pr ice
100 + VAT
100
= × 5400 = 5000
108

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 Finish Line & Beyond

Exercise 3

1. Calculate the amount and compound interest on

1
(a) Rs 10,800 for 3 years at 12 % per annum compounded annually.
2

R t
Answer: A= P(1+ )
100
1
P = 10800, R= 12 % and t=3 years
2
25
So, A= 10800(1+ )³
200
1
=10800(1+ )³
8
9
=10800( )³
8
9 9 9
= 10800 × × × =15377.34
8 8 8
So, Interest = A-P
=15377.54-10800=4577.34

1
(b) Rs 18,000 for 2 years at 10% per annum compounded annually.
2

10
Answer: Amount = 18000(1+ )²
100
11 11
= 18000 × ×
10 10
=21780
Interest after 2 years = 21780-18000=3780
10 × 1
Plus the interest after half year = 21780 × )=1089
100 × 2
Total interest after 2.5 years = 3780+1089=4869

(c) Rs 62,500 for 1.5 years at 8% per annum compounded half yearly.

Answer: Amount After 1.5 year

4
= 62500(1+ )³
100
Rate has bee halved because interest is compounded half yearly and for the same
reason time has been doubled.

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 Finish Line & Beyond

26 26 26
= 62500 × × × =70304
25 25 25
So, Interest = 70304-62500=7804

(d) Rs 8,000 for 1 year at 9% per annum compounded half yearly.

9
Answer: A= 8000(1+ )²
200
209 209
= 8000 × × =8736.20
200 200
So, interest =8736.20-8000=736.20

(e) Rs 10,000 for 1 year at 8% per annum compounded half yearly.

4
Answer: A=10000(1+ )²
100
26 26
= 10000 × × = 10816
25 25
So, interest = 10816-10000

Alternate method:
Calculating big multiplication can be tedious. Compound interest can also be calcu-
lated by finding yearly amount for each year separately.

1st half year 10000+400=10400

2nd half year 10400+416=10816

2. Kamala borrowed Rs 26,400 from a Bank to buy a scooter at a rate of

15% p.a. compounded yearly. What amount will she pay at the end of 2
years and 4 months to clear the loan?

Answer: Amount after 1st year 26400+3960=30360

Amount after 2nd year 30360+4554=34914
To make things easier interest can be bifurcated into two parts of 10% and 5% as
follows:
1st year 26400+2640+1320=30360
2nd year 30360+3036+1518=34914

Conventional Method
15
A=26400(1+ )²
100
23 23
= 26400 × × = 34914
20 20

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 Finish Line & Beyond

3. Fabina borrows Rs 12,500 at 12% per annum for 3 years at simple in-
terest and Radha borrows the same amount for the same time period at
10% per annum, compounded annually. Who pays more interest and by how
much?

P× t× r
Answer: Interest for Fabina =
100
12500 × 3 × 12
= = 4500
100
10
Amount for Radha = 12500(1+ )³
100
11 11 11
= 12500 × × × = 16637.50
10 10 10
Interest for Radha = 16637.50-12500=4137.50

Interset paid by Fabina is Rs. 362.50 more than that paid by radha
4. I borrowed Rs 12,000 from Jamshed at 6% per annum simple interest for
2 years. Had I borrowed this sum at 6% per annum compound interest,
what extra amount would I have to pay?

Answer: The extra amount payable would be interest on the first year’s interest
1st year’s interest = 12000 × 6%=720
Interest on 720 = 720 × 6%=43.20
Extra amount payable = Rs. 43.20

5. Vasudevan invested Rs 60,000 at an interest rate of 12% per annum

compounded
half yearly. What amount would he get
(i) after 6 months?

Answer: Amount = 60000+60000 × 6%=60000+3600=63600

(ii) after 1 year?

Answer: Amount = 63600+63600 × 6% = 63600+3816=67416

6. Arif took a loan of Rs 80,000 from a bank. If the rate of interest is 10%
per annum, find the difference in amounts he would be paying after 1.5
years if the interest is
(i) compounded annually.

Answer: Amount after 1 year = 80000+80000 × 10%=80000+8000=88000

Interest for the next 6 months = 88000 × 5%=4400
Amount after 1.5 years = 88000+4400 = 92400

(ii) compounded half yearly.

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 Finish Line & Beyond

Answer: rate of interest will become half and time will be three half years.

5
Amount = 80000(1+ )³
100
21 21 21
= 80000 × × × = 92610
20 20 20

7. Maria invested Rs 8,000 in a business. She would be paid interest at 5%

per annum compounded annually. Find
(i) The amount credited against her name at the end of the second year.

5
Answer: Amount = 8000(1+ )²
100
21 21
= 8000 × × = 8820
20 20
Interest after 2 years = 8820-8000=820

(ii) The interest for the 3rd year.

Interest for the 3rd year = 8820 × 5%=441

8. Find the amount and the compound interest on Rs 10,000 for 1.5 years at
10% per annum, compounded half yearly. Would this interest be more than
the interest he would get if it was compounded annually?

5
Answer: Amount = 10000(1+ )³
100
21 21 21
= 10000 × × × = 11576.25
20 20 20
Interest = 11576.25-10000=1576.25

This interest would be more than the interest compounded annually, as interest com-
pounded half yearly is always more than compounded annually at the same rate of
interest.

9. Find the amount which Ram will get on Rs 4096, if he gave it for 18
months at 12.5% per annum, interest being compounded half yearly.

25
Answer: Amount = 4096(1+ )³
400
17 17 17
= 4096 × × × = 4913
16 16 16

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 Finish Line & Beyond

10. The population of a place increased to 54,000 in 2003 at a rate of 5%

per annum
(i) find the population in 2001.

Answer: Let us assume the population to be P in 2001

5 21 21
Then 54000=P(1+ )² = P × ×
100 20 20
20 20
⇒ P = 54000 × × = 48979.5 which can be said to be 48980 in round figures.
21 21

(ii) what would be its population in 2005?

21 21
Answer: Population in 2005 = 54000( × )=59535
20 20
11. In a Laboratory, the count of bacteria in a certain experiment was in-
creasing at the rate of 2.5% per hour. Find the bacteria at the end of 2
hours if the count was initially 5, 06,000.

Answer: The bacteria’s growth will be compounded after every hour

5
Final Count after 2 hrs = 506000(1+ )²
200
41 41
= 506000 × × = 531616.25 which is 531616 in round figures
40 40

12. A scooter was bought at Rs 42,000. Its value depreciated at the rate of
8% per annum. Find its value after one year.

Answer: Value of scooter after 1 year = 42000-42000 × 8%=42000-3360=38640

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