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ENHANCEMENT
SKILLS-2
Syllabus
Unit-I
Quantitative Aptitude: Alligation Or Mixture, Simple Interest And
Compound Interest
Verbal Ability: Tenses & Conditional Clauses
Unit – II
Quantitative Aptitude: Time And Work, Pipes And Cistern, Permutations
And Combinations, Probability
Verbal Ability: Sentence Completions
Unit – III
Quantitative Aptitude: Time And Distance, Problems On Trains, Boats And
Streams, Races And Games Of Skill.
Verbal Ability: Spot The Errors.
Unit – IV
Quantitative Aptitude: Area, Volume And Surface Areas, Progressions
Verbal Ability: Jumbled Sentences, Cloze Tests.
Unit - V
Quantitative Aptitude: Clocks And Calendars, Cubes And Dice.
Verbal Ability: Advanced Reading Comprehension.
Unit-I
Alligation Or Mixture
Simple Interest
Compound Interest
ALLIGATION/MIXTURE
Concept of Mixture/Alligation
Mixture: When two or more ingredients are mixed, mixtures can be of two types:
Simple mixture: Formed after mixing two or more different ingredients.
Rule of Alligation
The rule enables us to find the ratio in which two or more ingredients/mixture of
different prices/concentration are mixed together to form a final mixture or desired price
or concentration. Two methods are used:
MEAN PRICE
(M)
D–M M–C
MEAN P RICE
(M) 325
MEAN P RICE
(M) 64.50
(D – M ) 72 – 64.50 = (M – C ) 64.50 – 62 =
7.50 2.50
CHEAPER QUANTITY : DEARER QUANTITY
= (D – M ) : ( M – C )
= 7.50 : 2.50 = 3 : 1
EXAMPLE 03
IN WHAT PROPORTION MUST TEAAT Rs. 60 / KG BE MIXED WITH TEA AT Rs. 65 / KG
SO THAT BY SELLING THE MIXTURE AT Rs. 68.20 / KG, HE MAY GAIN 10%?
68.20 IS S.P.
WITH 10% GAIN SO MEAN P RICE (M)
NEED TO FIND M.P. 68.20 *( 100/110) =
62
(D – M ) 65 – 62 = 3 (M – C ) 62 – 60 = 2
Cost Price(CP) of
Type 1 material is
Rs. 15 per kg
Cost Price(CP) of MEAN P RICE
Type 2 material is (M) X
Rs. 20 per kg
Let Cost Price(CP) of
resultant mixture be
MEAN (M) 20
(M – D ) 20 –10= 10 (C – M) 100 – 20 = 80
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Formulae for Simple Interest
Simple Interest
SI = P*T*R/100
Where,
P = money borrowed or lent out for a certain period
R = rate of interest
T= time period (in years) for which the amount is lent
Principal = 100* SI/ R * T
Rate = 100* SI/ P * T
Time = 100* SI/ R * P
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Amount = Principal + Interest A = P + I
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If the Interest is Compounded Quarterly then
𝑅/4 4T
Amount = P (1+ )
100
If the Interest is Compounded Monthly
𝑅/12 12T
Amount = P (1+ )
100
3
If the Interest is Compounded Annually but Time is in Fraction, say 2 years
2
𝑅 2 (3/2) 𝑅
Amount = P (1+ ) * (1+ )
100 100
If the Rate of interest for first year is R1 , for second year is R2 and for third
year R3 - - - - and the interest is compounded annually then
𝑅1 𝑅2 𝑅3
Amount = P (1+ ) (1+ ) (1+ )
100 100 100
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EXAMPLES
1. A sum of money at simple interest amounts
to Rs. 815 in 3 years and to Rs. 854 in 4
years. The sum is:
A.Rs. 650 B.Rs. 690
C.Rs. 698 D.Rs. 700
Answer: Option C
Explanation:
S.I. for 1 year = Rs. (854 - 815) = Rs. 39.
S.I. for 3 years = Rs.(39 x 3) = Rs. 117.
Principal = Rs. (815 - 117) = Rs. 698.
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2.Mr. Thomas invested an amount of Rs. 13,900 divided in two different schemes A and B
at the simple interest rate of 14% p.a. and 11% p.a. respectively. If the total amount of
simple interest earned in 2 years be Rs. 3508, what was the amount invested in
Scheme B?
A.Rs. 6400 B.Rs. 6500 C.Rs. 7200 D.Rs. 7500
Answer: Option A
Explanation:Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs.
(13900 - x).
then, x * 14 * 2+(13900 - x) * 11 *2 = 3508
100 100
28x - 22x = 350800 - (13900 x 22)
6x = 45000
x = 7500.
sum invested in Scheme B = Rs. (13900 - 7500) = Rs. 6400.
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3. A sum fetched a total simple interest of Rs. 4016.25 at
the rate of 9 p.c.p.a. in 5 years. What is the sum?
A.Rs. 4462.50 B.Rs. 8032.50
C.Rs. 8900 D.Rs. 8925
Answer: Option D
Explanation:
100∗4016.25 401625
Principal = = Rs.
9∗5 45
= Rs. 8925.
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4. Reena took a loan of Rs. 1200 with simple interest for as many
years as the rate of interest. If she paid Rs. 432 as interest at the
end of the loan period, what was the rate of interest?
A.3.6 B.6
C.18 D. Cannot be determined
Answer: Option B
Explanation:
Let rate = R% and time = R years. Then,
1200∗𝑅∗𝑅
SI= =432
100
12R2 = 432 ⇒ R2 = 36, R = 6
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5. An automobile financier claims to be lending money at simple interest, but he includes
the interest every six months for calculating the principal. If he is charging an interest
of 10%, the effective rate of interest becomes:
A.10% B.10.25% C.10.5% D.None of these
Answer: Option B
Explanation:Let the sum be Rs. 100. Then,
100∗10∗1
S.I. for first 6 months = = Rs. 5
100∗2
105∗10∗1
S.I. for last 6 months = = Rs. 5.25
100∗2
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25
Effective rate = (110.25 - 100) = 10.25%
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6. In what time will a man receive Rs. 1449 as compound interest on Rs.
10000 at 7% p.a. compounded annually?
a) 4 Years b) 2 1/2 Years c) 2 Years d) 5 Years
Answer :Option C
Explanation: CI = Rs.1449
therefore, A =10000 + 1449 = Rs. 11449
→ 11449 = 10000(1 + 7/100)t
→ t = 2 years.
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7.What will be the compound interest on a sum of Rs. 25,000 after 3
years at the rate of 12 p.c.p.a.?
A.Rs. 9000.30 B.Rs. 9720
C.Rs. 10123.20 D.Rs. 10483.20
Answer: Option C
8. At what rate of compound interest per annum will a sum of Rs.
1200 become Rs. 1348.32 in 2 years?
A.6% B.6.5% C.7% D.7.5%
Answer: Option A
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9. A person invested a sum of money at compound
interest. It amounted to Rs. 4840 in 2 years and
to Rs. 5324 in 3 years. Find the rate of interest.
a) 8 % b) 12 %
c) 10 % d) 15 %
Answer : Option C
Explanation:
(5324−4840)
Rate of interest = = 10%
4840∗100
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10. A bank offers 5% compound interest calculated on half-yearly basis. A
customer deposits Rs. 1600 each on 1stJanuary and 1st July of a year. At the
end of the year, the amount he would have gained by way of interest is:
A.Rs. 120 B.Rs. 121 C.Rs. 122 D.Rs. 123
Answer: Option B
11. The difference in simple interest and compound interest on a certain sum of
money in 2 years at 10 % p.a. is Rs. 50. The sum is
a) Rs. 10000 b) Rs. 6000 c) Rs. 5000 d) Rs. 2000
Answer: Option C
Explanation: If the Difference between SI & CI for 2 years is Rs. x,
100 2
then Principal = x ( )
𝑅
50∗100∗100
P= ⇒P = 5000.
10∗10
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12. The difference between compound interest and simple interest on
a certain sum for 2 years at 10 % is Rs. 25. The sum is
a) Rs. 1200 b) Rs. 2500 c) Rs. 750 d) Rs. 1250
Answer: Option B
100 2
Explanation: Principal = x ( ) where x is the difference in CI & SI for
𝑅
2 years.
100 2
∴ P =25( ) = 2500.
10
13. What annual instalment will discharge a debt of Rs 770 due in 5
years, the rate of interest being 5% per annum?
a) Rs. 120 b) Rs. 100 c) Rs. 140 d) Rs. 125
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Solution:Installment paid at the end of 1st ,2nd ,3rd ,4th and 5thyear will be
simple interest paid for 4,3,2,1,0years respectively
Let us suppose the installment given is 100rs
5∗4∗100
At the end of the first year amount paid will be => 100 + = Rs. 120
100
At the end of the second year amount paid will be
5∗3∗100
=>100 + = Rs. 115
100
5∗2∗100
At the end of the third year amount paid will be =>100 + = Rs 110
100
At the end of the fourth year amount paid will be
5∗1∗100
=>100 + =
Rs 105
100
At the end of the fifth year amount paid will be= Rs 100
Total amount paid is = 120+115+110+105+100= Rs 550
For an amount of Rs 550 annual installment is Rs100
For Rs 770 it will be =(100 x 770)/550 = RS. 140
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14. A sum of Rs. 1275 is borrowed at 4% pa compound interest and paid
back in 2 equal annual installments. What is the amount of each
installment?
Solution:Let the value of installment be x
Equating the amounts
1275*(1.04)2=x +1.04x
x= Rs. 676
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To find the installment value based on simple interest
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In case of compound interest we can find the installment
value by using the formula
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