# Shortcuts learnt from today’s session: 1)Amount doubling principle for Compound Interest is: after 72/r years it gets doubled

. 2) Amount doubling principle for Simple Interest is: after 100/r years it gets doubled . 3)when a person makes x% profit on an item.he decides to make an additional profit of y%..then the total profit percentage gained by him is given by =X+y+(xy/100)

1)Sunny Leone takes personal loans at compound interest 8% and deposits into bonds yielding simple interest at 10%. Find the maximum possible period until which she can earn money in this way?

2 years 7 years 10 years 20 years

2. Two cars, City and Civic bought for 7lakhs and 8lakhs depreciate at the rate of 8% and 10% respectively. Find out which car is worth more at the end of 3 years.

City

Civic

Both are equal

5% 131% 140. Find the percentage value of the amount in the fixed deposit at the end of 3 years. 360 5 Find the difference in the number of years required to double a sum with simple interest 5% and compound interest 3% calculated half yearly? 1 year 2 years 3 years 4 years . A newly launched Money bank offers compound interest of 10% and increases the interest rate at a compound interest of 20% on all fixed deposits. 240 Rs.4% 149. 145.Data Insufficient 3. 96 Rs. Find the difference between the compound interest and simple interest earned on the sum of Rs 15000 at a rate of 8% in 2 years? Rs. 100 Rs.7% 4.

5 2980 Solution:Let the value of each instalment be Rs x.I = 72/3 = 24 periods/intervals Since the interests are calculated half years the difference will also be in half yearly periods. Anwar bought a computer worth Rs 30. What is the value of each instalment? 4930 2485 3280.5 /100 )^1 + x /(1 + 12.000 = 9860 He has to pay a sum of Rs 9860 in 4 equal instalments at the rate 12.000 and remaining amount. the total difference in years = (24 – 20)/2= 4/2= 2 years Hence.5 /100 )^3 + x /(1 + 12.Solution:From the formula for doubling principals we know that Doubling from S.5 /100 )^2 + x /(1 + 12. we have x /(1 + 12. 6. Remaining amount to be paid = 30. Using the same approach as explained in solved example. he paid back from his credit card in 4 equal instalments at the rate of 12.5 /100 )^4 = 9860 On solving.5% per annum. the correct answer is option (c). He made a down payment of Rs 21.860.5 Hence. Therefore. the correct answer is option (b).I = 100/5 = 20 periods/intervals Doubling from C. . we get x = 3280.860 – 21.5% compound interest.

find in how many years will Poorva be able to set off the interest for Ruchika and herself against the interest accrued on her bank deposit in that year. Poorva takes the same loan but by handy means deposits the money into a compound interest yielding scheme of 10% per annum. the correct answer is option (d). Ruchika takes a student loan which charges simple interest of 12% per annum. P = 214000 Hence. If the principal for both loans is 20 lakhs. we get. A = P + (P x r x t)/100 235400 = P (1 + 2r/100) 267500 = P (1 + 5r/100) On dividing both the above equations.7. 8. 7 years 8 years 9 years 10 years . we get 235400 = P (1 + 10/100) Therefore. A certain sum amounts to Rs 235400 in 2 years and Rs 267500 in five years both at simple interest. Find the principal? 234000 207000 254000 214000 Sol:using the formula for simple interest. and then cross multiplying. r = 5% On substituting the value of 'r' in any one of the above equations.

find out the approximate Rupee to dollar conversion ratio after 5 years.2 years it'll become 44 lakhs and in 9. The inflation cuts down on the worth of the rupee at 5% per annum.e in 7.2 years. the gold prices rises annually at 10% per annum. Compound interest accrued in a year will be equal to the interests on the loan to be paid when 10% of the amount becomes 24% of the principal i. Therefore. approximately 9 years Hence. treat gold and Rupee as one entity for the increment and inflation calculation. Treat inflation as depreciation in rupee's worth. RBI maintains a reserve of gold to keep the value of the Rupee against the dollar up. 9. It buys gold from the Indian Gold markets to keep the currency in the country itself while stacking up the gold reserves.e 24/100 x 2000000 = 480000 = 10% of Amount Amount = 480000/10% = 4800000 Using the formula for compound interest we know the amount will double up in 72/r years= 72/10 = 7.2 years the total amount of 20 lakhs will become 40lakhs. the correct answer is option (c). the interest from her deposit would need to be 12% + 12% = 24% of her principal annually.2 years it will become 48.4lakhs. If the dollar grows at 1% per annum. i. 33:1 37:1 41:1 45:1 . In 8. Present Rupee to dollar conversion is 50 to 1.Sol:For Poorva to be able to pay of the interest from her as well as Ruchika's loan.

2000 Rs. 1. 11) A trader claims to his customers that he does not make any profit from the goods he sells as he sells them at the price he bought from retailer. then SP = (1 + 20/100) x = 1.11% Sol:Let us take the cost price of 1 gm = Rs 1 Selling price = Rs 1000.20x . What is the cost price of the goods? Rs. 3000 Rs. the correct answer is option (c).10/100) x = 0. x = 1200/0. SP = (1.20x Given that.90x = 1200 or.3 = Rs 4000 Hence.11% .10) A shopkeeper sells goods at 10% loss. If he had sold it at 20% profit. he would have earned Rs 1200 more. Profit = Rs 100 Profit % = (Profit x 100)/ CP = 100 x100 /900 = 11.33% 31. What will the profit percent earned by the trader if he wishes to make another profit of 20% from the sale? 11. 5000 Sol:Let the CP be 'x'. Cost price = Rs 900. However what his customers don't know is that he uses a weight of 900 gm instead of 1000 gm.0. 4000 Rs.90x Had he sold at 20% profit.11% 22.22% 33.

19/0. the correct answer is option (c).To find the total profit %.17 = Rs. 12) A shopkeeper loses 10% by selling onions at 26 for Rs 5. 0. Successive % increase = x + y + (xy)/100= 11. we can use the successive % change formula. 0.11 + 20 + (11.0. How many should he sell for a rupee to gain 17%? 3. his SP will be = 0. Hence. the correct answer is option (c).5 5 4 3 Sol:The shopkeeper loses10% for selling 26 onions at Rs.21 x 1.247 = approximately 4.33% Hence.21 per onion For a 17% profit.247 For a rupee that will come out to 1/0. 13) An honest shopkeeper professes to sell goods at cost price.21 x (1 + 17/100) = 0.19/(1 . however he uses 800 gm weight instead of 1000 gm.9= Rs. If the shopkeeper wishes to sell it at additional 15% profit.19 per onion So the CP = SP / (1 .loss%/100) = 0.11 x 20)/100= 33. the SP = Rs.10/100) = 0. then find the total profit percentage gained by him? .5.

Marked price = 100. the correct answer is option (b).87% Sol:if the cost of 1 gm of goods = Rs 1 Selling price = Rs 1000. New marked price = 140.75% 36. . Hence.43. Selling price = 126. 10% discount = 14. He decides to sell the item by increasing its marked price by 40% and then giving a discount of 10% on the new marked price. Cost price = Rs 800 Profit%=((1000-800))/800=25% He wishes it sell it as 15% profit. Total profit can be found by successive % formulae x + y + (xy)/ 100 25 + 15 + (25 x15)/100 = 40 + 3.11% 29.75% Hence.75 = 43. 14) Ramesh buys a gift item at a marked price of Rs 100.67% 51. How much profit/loss will he make on the item? 26% loss 26% profit 24% loss 24% profit Sol:This is a very simple question on Discount.Hence Ramesh makes a profit of 26%. the correct answer is option (a).

When will he break even on his investment? 2010 2025 2015 2020 Sol:Expenses = 31 + 20 + 20 = 71 Cr Income = 24 + 15 + 20 + 32 = 91 Cr . the correct answer is option (a). Reebok. 15 crores from main sponsors DLF and Vodafone and 20 crores in gate receipts per year.85% The calculation can be done mentally as shown below. the SP is equal to MP.15) Cost price of an article is Rs 253. and 20 crores on players' salaries.CP = 326 .25% 33. His main expenses per annum are franchise fees 31 crores and 20 crores of administrative costs. then what is his profit percentage? 28.67% Sol:SP=CP(1+1/11)=253x12/11=276 MP = 276 + 50 = 326 Since there is no discount to be given.09%. He has other small sponsorship deals like NOKIA.253 = 73 Profit %=(73x100)/253=28.33% 37. Tag Heuretc and manages to rope in 32 crores per annum. By giving a discount of Rs 50. he makes a profit of 9. 10% of 253 = 25 and 30% of 253 = 75 Therefore. HDIL.85% 23. Profit = MP . If he doesn't give any discount. Hence. He gets 24 crores from TV rights. 16) Shahrukh Khan bought Kolkata Knight Riders in 2008 for 240 crores. our answer must be little less than 30%.

the correct answer is option (b). after the second year the discount on the original price will be= 10 + 10 .41% This calculation can be done mentally as 10% of 7290 = 729.1/100) = Rs. he'll break even in 2008 + 12 = 2020 Hence.19 x 10 /100= 27. the correct answer must be little more than 30% i. 17) iPod prices fall by 10% every year. Rohan has been waiting for 3 years for the iPod touch to reach his budget of Rs.10000 3 years back.Profit = 91 . the correct answer is option (d). Therefore.5000) x 100/7290 = (2290/7290) x 100= 31. Therefore.5% 31. its present cost = 10000 x (1 .e. 20% of 7290 = 1558 and 30% of 7290 = 2287 Therefore.7290 Rohan's budget is Rs 5000. to fall into Rohan's budget? 17.5000.1%.4% 29.71 = 20 Cr To break even he needs to make 240 Cr.7% 35. so the discount needed = (Discount) x 100/MP= (7290 . .10 x 10 /100= 19% And again for the third year it will be = 19 + 10 .5% Sol:Using the successive discount percentage formula.41% Hence. he'll need = 240/20= 12 Years. Find what percent discount the store must offer to make the iPod touch priced Rs. at the present rate.27. = 31.

19) Sachin auctioned the two bats he had used to score his double century for charity.2345.32% Sol:Total investment = 10 x 2345 + 100 x 195 + 50 x 760 = 23450 +19500 + 38000= Rs. 80950 Selling Price = 10 x 2156 + 100 x 223 + 50 x 820 = 21560 + 22300 + 41000= Rs. = 4. he lowered it to 50lakhs. The auction commissioner set a base price of 1 crore for each bat.80950= Rs. 100 ITC stocks each at Rs. What was the percentage loss over the earlier set base price and the percentage profit over the latter base price? 13.5% loss.e.195 and 50 JP Associates stocks at Rs.59% 3. One bat went 76lakhs other went for 97lakhs. Since no bidders came forward. 223 and 820 respectively. 73% Profit 13. the correct answer is option (b).5% loss. 84860 Profit = 84860 . 4% of 84860 = (4243 .18)Vipul buys 10 Reliance stocks each at Rs. What is his profit margin? 2. 10% of 84860 = 8486 and 5% of 84860 = 4243 Therefore.848) = 3395 So the answer lies between 4% and 5% i.81% 4. 146% profit 27% loss.3900 Profit margin = (3900 x 100)/84860 This calculation can be easily done by using options .760. He sells them when in dire need of money at the prices 2156.59% Hence.37% 5. 146% profit .

73 x 100 / 1 = 73% Profit Hence.56 = Rs.1 = 0. Total sale = 1. 869. Thus CP x (1 .73 Cr Loss = 2 .5% 13.47 + 869. One transaction earns 15% profit.73 .03 Total SP = 2000 Loss % = (2046. 20) A shopkeeper sells two Vases.22% Profit 2.03= 2. 21) For every 150 chocolates bought.73 Cr Profit = 1.1000.73 = 0. Find the net percentage profit or loss in the transaction? Loss 1.1000. find out the percentage discount it is offering through this offer? 23.67% .03 2000) x 100/2046.37% Loss 2.37% Profit 1.73 Cr Percentage profit = 0.33% 26. Mentos gives 20 for free.1. Total sale value = 76 + 97 = 173 lakhs Earlier base price for each bat = 1 Cr Total base price = 2 Cr.15/100) = SP CP = 1000/0. 73% Profit We can see that the two bats went for 76lakhs and 97 lakhs.27% loss.15= Rs. Thus CP x (1 + 15/100) = SP CP = 1000/1.85= Rs.56 Other transaction earns 15% loss.47 Total CP = 1176. the correct answer is option (a).27 Cr Percentage loss = 0.22% Hence.5% Loss Later base price = 50 lakhs = Total base sale value = 1 Cr Total sale = 1. the correct answer is option (c). 1176. 2046. one for 15% profit over the marked price and one for 15% loss at the price of Rs.27 x 100/2 = 13.22% The selling price for both the vase is Rs.

9.15 a litre and he sells the mixture for Rs.95= Rs.625 litre Cost for the mixture = 0.9. then discount percentage is given by (yx100)/(x + y) So discount = 20 x 100 / (150 + 20)= 2000 / 170 In DI.5/100)= 25 x 0. 53.88% = 11.375= 153.14% In a litre of the mixture there is 5 parts milk and 3 parts water.11.375) x 100/9. the correct answer is option (d).625 x 15 = Rs. we have done reciprocal of 17 in percentage = 5.25 a litre with 5% discount(he sells the mixture after giving a 5% discount on Rs. Find his percentage profit.75 Profit = (23.28% 153.77% Hence.33% .23. if the milks cost him Rs. So total milk in 1 litre of mixture = 1 x 5/ (5 + 3)= 0.75% We know that if you purchase 'x' articles and you get 'y' articles for free on that. 22) A milkman mixes water with milk in the ratio 3:5.375 Selling price = 25 x (1 .88% So 200/17 = 2 x 5.25 a litre).33% 128.75 .33% 87.

5% Loss Let P be the CP for Arjun.675P Original CP to Arjun = P Therefore Loss% = (P .Hence.9 = 1.2P x 0.0.e.35P x 0. who sells it at 50% discount to Yudhishtir.35P Sahadev sells it at 50% discount = 1. Bhim sells it at 10% discount to Nakul.5 = 0.08P x 1. He sells it to Bhim at 20% profit i.5% Loss 67.2P Bhim sells it at 10% discount = 1.675P) x 100/P= 32. the correct answer is option (b) . at 1. the correct answer is option (c).08P Nakul sells it at 25% profit = 1.5% Profit 32.5% Profit 67.5% loss Hence. Find what is the final transaction price as percentage profit/loss of the price Arjun bought it for? 32. Nakul sells it to 25% profit to Sahadev.25 = 1. 23) Arjun buys a product and sells it off to Bhim for 20% profit.