Profit-Loss

IMPORTANT FACTS

Cost Price:
The price, at which an article is purchased, is called its cost price, abbreviated as C.P.

Selling Price:
The price, at which an article is sold, is called its selling prices, abbreviated as S.P.

Profit or Gain:
If S.P. is greater than C.P., the seller is said to have a profit or gain.

Loss:
If S.P. is less than C.P., the seller is said to have incurred a loss.

IMPORTANT FORMULAE
1. Gain = (S.P.) - (C.P.)

2. Loss = (C.P.) - (S.P.)

3. Loss or gain is always reckoned on C.P.

4. Gain Percentage: (Gain %)

Gain x 100
Gain % =
C.P.

5. Loss Percentage: (Loss %)

Loss x 100
Loss % =
C.P.

6. Selling Price: (S.P.)

(100 + Gain %)
SP = x C.P
100

7. Selling Price: (S.P.)

(100 - Loss %)
SP = x C.P.
100

8. Cost Price: (C.P.)

100
C.P. = x S.P.
(100 + Gain %)

9. Cost Price: (C.P.)

100
C.P. = x S.P.
(100 - Loss %)

10. If an article is sold at a gain of say 35%, then S.P. = 135% of C.P.

11. If an article is sold at a loss of say, 35% then S.P. = 65% of C.P.
12. When a person sells two similar items, one at a gain of say x%, and the other at a loss of x%,
then the seller always incurs a loss given by:
Common Loss and Gain % 2 x 2
Loss % = = .
10 10
13. If a trader professes to sell his goods at cost price, but uses false weights, then
Error
Gain % = x 100
(True Value) - (Error) %.

Profit and Loss – Quantitative Data Sufficiency 1

1A shopkeeper sells some articles at the profit of 25% on the original price. What is the exact
.amount of profit? To find the answer, which of the following information given in Statements I
and II is/are necessary?

I. Sale price of the article

II. Number of articles sold

A. Only I is necessary

B. Only II is necessary

C. Either I or II is necessary

D. Both I and II are necessary

E. None of these
Answer: Option D
Explanation:
Gain = 25% of C.P.
In order to find gain, we must know the sale price of each article and the number of articles sold.
Correct answer is (D).
2A shopkeeper sells some toys at Rs. 250 each. What percent profit does he make? To find the
.answer, which of the following information given in Statements I and II is/are necessary?

I. Number of toys sold.

 II. Cost price of each toy.

A. Only I is necessary

B. Only II is necessary

C. Both I and II are necessary

D. Either I or II ins necessary

E. None of these
Answer: Option B
Explanation:
S.P. = Rs. 250 each.
To find gain percent, we must know the C.P. of each.
Correct answer is (B).
1A man mixes two types of rice (X and Y) and sells the mixture at the rate of Rs. 17 per kg. Find
.his profit percentage.

I. The rate of X is Rs. 20 per kg.

II. The rate of Y is Rs. 13 per kg.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option D
Explanation:
The ratio, in which X and Y are mixed, is not given.
So, both I and II together cannot give the answer.
Correct answer is (D).
2By selling a product with 20% profit, how much profit was earned?
.
I. The difference between cost and selling price is Rs. 40.

II. The selling price is 120 percent of the cost price.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

 E. Both I and II are necessary to answer
Answer: Option A
Explanation:
Gain = 20%
I. Profit = (S.P.) - (C.P.) = Rs. 40.
Thus, I give the answer. But, II does not give the answer.
Correct answer is (A).
1By selling an article what is the profit percent gained?
.
I. 5% discount is given on list price.

II. If discount is not given, 20% profit is gained.

III. The cost price of the articles is Rs. 5000.

A. Only I and II

B. Only II and III

C. Only I and III

D. All I, II and III

E. None of these
Answer: Option A
Explanation:
I. Let the list price be Rs. x.
95 19x
Then, S.P. = 95% of Rs. x = Rs. xx = Rs.
100 20
II. When S.P. = Rs. x and gain = 20%.
100 5x
Then, C.P. = Rs. x x = Rs.
120 6
19x 5x 57x - 50x 7x
Gain = - = =
20 6 60 60
7x 6
Gain % = x x 100
60 5x % = 14%.
Thus, I and II only give the answer.
Correct answer is (A).
2What was the percentage of discount given?
.
I. 23.5% profit was earned by selling an almirah for Rs. 12,350.

II. If there were no discount, the earned profit would have been 30%.

III. The cost price of the almirah was Rs. 10,000.

A. Only I and II
 B. Only II and III

C. Only I and III

D. Any two of the three

E. None of these
Answer: Option E
Explanation:
I. S.P. = Rs. 12350, Gain = 23.5%
100
C.P. = Rs. x 12350 = Rs. 10,000.
123.5
II. M.P. = 130% of C.P. = 130% of Rs. 10,000 = Rs. 13,000.
From I and II, discount = Rs. (13000 - 12350) = Rs. 650.
650
Discount % = x 100
13000 % = 5%.
Thus, I and II give the answer.
II and III can not give the answer. Because we require profit percentage with discount and profit
percentage without discount. So II and III are not sufficient.
Since III gives C.P. = Rs. 10,000, I and III give the answer.
Therefore, I and II [or] I and III give the answer.
Correct answer is (E).
1What is the percent profit earned by the shopkeeper on selling the articles in his shop?
.
I. Labeled price of the articles sold was 130% of the cost price.

II. Cost price of each article was Rs. 550.

III. A discount of 10% on labeled price was offered.

A. Only I

B. Only II

C. I and III

D. All the three are required

E. Question cannot be answer even with information in all the three statements.
Answer: Option C
Explanation:
I. Let C.P. be Rs. x.
13x
Then, M.P. = 130% of x = Rs.
10 .
III. S.P. = 90% of M.P.
90 13x 117x
Thus, I and III give, S.P. = Rs. x = Rs.
100 10 100
117x 17x
Gain = Rs. -x = Rs.
100 100
Thus, from I and III, gain % can be obtained.
Clearly, II is redundant.

Exercise :: Profit and Loss - General Questions

1. Alfred buys an old scooter for Rs. 4700 and spends Rs. 800 on its repairs. If he sells the
scooter for Rs. 5800, his gain percent is:
4
A. 4 %
7

5
B. 5 %
11

C. 10%

D. 12%
Answer: Option B
Explanation:
Cost Price (C.P.) = Rs. (4700 + 800) = Rs. 5500.
Selling Price (S.P.) = Rs. 5800.
Gain = (S.P.) - (C.P.) = Rs.(5800 - 5500) = Rs. 300.
300 5
Gain % = x 100 =5 %
5500 % 11
Video Explanation: https://youtu.be/St2gUTc94hw

2. The cost price of 20 articles is the same as the selling price of x articles. If the profit is 25%,
then the value of x is:
A. 15

B. 16

C. 18

D. 25
Answer: Option B
Explanation:
Let C.P. of each article be Re. 1 C.P. of x articles = Rs. x.
S.P. of x articles = Rs. 20.
Profit = Rs. (20 - x).
20 - x
x 100 = 25
x
2000 - 100x = 25x
125x = 2000
x = 16.
Video Explanation: https://youtu.be/sidqvjUoZxY
If selling price is doubled, the profit triples. Find the profit percent.
 2
A. 66
3

B. 100

1
C. 105
3

D. 120
Answer: Option B
Explanation:
Let C.P. be Rs. x and S.P. be Rs. y.
Then, 3(y - x) = (2y - x) y = 2x.
Profit = Rs. (y - x) = Rs. (2x - x) = Rs. x.
x
Profit % = x 100
x % = 100%
Video Explanation: https://youtu.be/dPzF10mGsWE

4.In a certain store, the profit is 320% of the cost. If the cost increases by 25% but the
selling price remains constant, approximately what percentage of the selling price is the
profit?
A. 30%

B. 70%

C. 100%

D. 250%
Answer: Option B
Explanation:
Let C.P.= Rs. 100. Then, Profit = Rs. 320, S.P. = Rs. 420.
New C.P. = 125% of Rs. 100 = Rs. 125
New S.P. = Rs. 420.
Profit = Rs. (420 - 125) = Rs. 295.
295 1475
Required percentage = x 100 = % = 70% (approximately).
420 % 21
Video Explanation: https://youtu.be/bQA8SB8ycbw

5.
A vendor bought toffees at 6 for a rupee. How many for a rupee must he sell to gain 20%?
A. 3

B. 4

C. 5

D. 6
Answer: Option C
Explanation:
C.P. of 6 toffees = Re. 1
S.P. of 6 toffees = 120% of Re. 1 = Rs. 6
 5
6
For Rs. , toffees sold = 6.
5
5
For Re. 1, toffees sold = 6x
= 5.
6
Video Explanation: https://youtu.be/7wKrnZ0LKA8

Exercise :: Simple Interest - Important Formulas

1. Principal:
The money borrowed or lent out for a certain period is called the principal or the sum.

2. Interest:
Extra money paid for using other's money is called interest.

3. Simple Interest (S.I.):

If the interest on a sum borrowed for certain period is reckoned uniformly, then it is called simple
interest.

Let Principal = P, Rate = R% per annum (p.a.) and Time = T years. Then
PxRxT
(i). Simple Intereest =
100
100 x S.I. 100 x S.I. 100 x S.I.
(ii). P = ;R= and T = .
RxT PxT PxR

Simple Interest General Questions

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.
Video Explanation: https://youtu.be/K7lW_rHDTCE
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

E. None of these
Answer: Option A
Explanation:
Let the sum invested in Scheme A be Rs. x and that in Scheme B be Rs. (13900 - x).
x x 14 x 2 (13900 - x) x 11 x 2
Then, + = 3508
100 100
28x - 22x = 350800 - (13900 x 22)
6x = 45000
x = 7500.
So, sum invested in Scheme B = Rs. (13900 - 7500) = Rs. 6400.
Video Explanation: https://youtu.be/Xi4kU9y6ppk
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

E. None of these
Answer: Option D
Explanation:
100 x 4016.25
Principal = Rs.
9x5

401625
= Rs.
45

= Rs. 8925.

How much time will it take for an amount of Rs. 450 to yield Rs. 81 as interest at 4.5% per
annum of simple interest?
A. 3.5 years

B. 4 years

C. 4.5 years
 D. 5 years
Answer: Option B
Explanation:
100 x 81
Time = = 4 years.
450 x 4.5 years
Video Explanation: https://youtu.be/WdBzN0Sj8jc
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

E. None of these
Answer: Option B
Explanation:
Let rate = R% and time = R years.
1200 x R x R
Then, = 432
100
12R2 = 432
R2 = 36
R = 6.
Video Explanation: https://youtu.be/TjjI4iRkzT0
A sum of Rs. 12,500 amounts to Rs. 15,500 in 4 years at the rate of simple interest. What is
the rate of interest?
A. 3%

B. 4%

C. 5%

D. 6%

E. None of these
Answer: Option D
Explanation:
S.I. = Rs. (15500 - 12500) = Rs. 3000.
100 x 3000
Rate = = 6%
12500 x 4 %
Video Explanation: https://youtu.be/SIcQu1HOmOk
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 x 10 x 1
S.I. for first 6 months = Rs. = Rs. 5
100 x 2

105 x 10 x 1
S.I. for last 6 months = Rs. = Rs. 5.25
100 x 2
So, amount at the end of 1 year = Rs. (100 + 5 + 5.25) = Rs. 110.25
Effective rate = (110.25 - 100) = 10.25%
A lent Rs. 5000 to B for 2 years and Rs. 3000 to C for 4 years on simple interest at the same
rate of interest and received Rs. 2200 in all from both of them as interest. The rate of interest
per annum is:
A. 5%

B. 7%

1
C. 7 %
8

D. 10%
Answer: Option D
Explanation:
Let the rate be R% p.a.
5000 x R x 2 3000 x R x 4
Then, + = 2200.
100 100
100R + 120R = 2200
2200
R= = 10.
220
Rate = 10%.
A sum of Rs. 725 is lent in the beginning of a year at a certain rate of interest. After 8
months, a sum of Rs. 362.50 more is lent but at the rate twice the former. At the end of the
year, Rs. 33.50 is earned as interest from both the loans. What was the original rate of
interest?
A. 3.6%

B. 4.5%

C. 5%

D. 6%

E. None of these
Answer: Option E
Explanation:
Let the original rate be R%. Then, new rate = (2R)%.
Note:

Here, original rate is for 1 year(s); the new rate is for only 4 months i.e. year(s).
725 x R x 1 362.50 x 2R x 1
+ = 33.50
100 100 x 3
(2175 + 725) R = 33.50 x 100 x 3
(2175 + 725) R = 10050
(2900)R = 10050
R = 10050 = 3.46
 2900
Original rate = 3.46%
A man took loan from a bank at the rate of 12% p.a. simple interest. After 3 years he had to
pay Rs. 5400 interest only for the period. The principal amount borrowed by him was:
A. Rs. 2000

B. Rs. 10,000

C. Rs. 15,000

D. Rs. 20,000
Answer: Option C
Explanation:
100 x 5400
Principal = Rs. = Rs. 15000.
12 x 3
A sum of money amounts to Rs. 9800 after 5 years and Rs. 12005 after 8 years at the same
rate of simple interest. The rate of interest per annum is:
A. 5%

B. 8%

C. 12%

D. 15%
Answer: Option C
Explanation:
S.I. for 3 years = Rs. (12005 - 9800) = Rs. 2205.
2205
S.I. for 5 years = Rs. x 5 = Rs. 3675
3
Principal = Rs. (9800 - 3675) = Rs. 6125.
100 x 3675
Hence, rate = = 12%
6125 x 5 %
Video Explanation: https://youtu.be/UYwiBCRN39s
What will be the ratio of simple interest earned by certain amount at the same rate of interest
for 6 years and that for 9 years?
A. 1:3

B. 1 : 4

C. 2 : 3

D. Data inadequate

E. None of these
Answer: Option C
Explanation:
Let the principal be P and rate of interest be R%.
PxRx6
100 6PR 6
Required ratio = = = = 2 : 3.
PxRx9 9PR 9
100
Video Explanation: https://youtu.be/GaaEDwTWc6w
A certain amount earns simple interest of Rs. 1750 after 7 years. Had the interest been 2%
more, how much more interest would it have earned?
 A. Rs. 35

B. Rs. 245

C. Rs. 350

D. Cannot be determined

E. None of these
Answer: Option D
Explanation:
We need to know the S.I., principal and time to find the rate.
Since the principal is not given, so data is inadequate.
A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He immediately lends it to

another person at 6 % p.a for 2 years. Find his gain in the transaction per year.
A. Rs. 112.50

B. Rs. 125

C. Rs. 225

D. Rs. 167.50
Answer: Option A
Explanation:
25 2 5000 x 4 x 2
Gain in 2 years = Rs. 5000 x x -
4 100 100

= Rs. (625 - 400)

= Rs. 225.

225
Gain in 1 year = Rs. = Rs. 112.50
2
Video Explanation: https://youtu.be/zBjcwqIcmL4

Simple Interest - Data Sufficiency 1

1. The simple interest on a sum of money is Rs. 50. What is the sum?

I. The interest rate is 10% p.a.

II. The sum earned simple interest in 10 years.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

 D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option E
Explanation:
Given : S.I. = Rs. 50.
I gives, R = 10% p.a.
II gives, T = 10 years.
100 x S.I. 100 x 50
Sum = = Rs. = Rs. 50.
TxR 10 x 10
Thus, I and II together give the answer.
Correct answer is (E).

2. What is the sum which earned interest?

I. The total simple interest was Rs. 7000 after 7 years.

II. The total of sum and simple interest was double of the sum after 5 years.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option E
Explanation:
Let the sum be Rs. x.
I gives, S.I. = Rs. 7000 and T = 7 years.
II gives, Sum + S.I. for 5 years = 2 x Sum Sum = S.I. for 5 years.
Now, S.I. for 7 years = Rs. 7000.
7000
S.I. for 1 year = Rs. = Rs. 1000.
7
Thus, I and II both are needed to get the answer.
Correct answer is (E).
3. What percentage of simple interest per annum did Anand pay to Deepak?

I. Anand borrowed Rs. 8000 from Deepak for four years.

II. Anand returned Rs. 8800 to Deepak at the end of two years and settled the loan.

A. I alone sufficient while II alone not sufficient to answer

 B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option E
Explanation:
Let the rate be R% p.a.
I gives, P = Rs. 8000 and T = 4 years.
II gives, S.I. = Rs. (8800 - 8000) = Rs. 800.
100 x S.I. 100 x 800 1
R= = = 2 % p.a.
PxT 8000 x 4 % 2

Thus, I and II both are needed to get the answer.

Correct answer is (E).
4. What is the rate of simple interest?

I. The total interest earned was Rs. 4000.

II. The sum was invested for 4 years.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option D
Explanation:
100 x S.I.
We know that, R =
PxT
Now, I gives, S.I. = Rs. 4000.
II gives, T = 4 years.
But, P is unknown. So, we cannot find R.
So, given data is insufficient to get R.
Correct answer is (D).
1. What is the principal sum?

I. The sum amounts to Rs. 690 in 3 years at S.I.

II. The sum amounts to Rs. 750 in 5 years at S.I.

 III. The rate of interest is 5% p.a.

A. I and III only

B. II and III only

C. I and II only

D. I and III only, or II and III only

E. Any two of the three

Answer: Option E
Explanation:
Clearly, any two of the three will give us the answer.
Correct answer is (E).

Exercise :: Compound Interest - Important Formulas

1. Let Principal = P, Rate = R% per annum, Time = n years.

2. When interest is compound Annually:
R n
Amount = P 1 +
100
3. When interest is compounded Half-yearly:
(R/2) 2n
Amount = P 1 +
100
4. When interest is compounded Quarterly:
(R/4) 4n
Amount = P 1 +
100

5. When interest is compounded Annually but time is in fraction, say 3 years.

3
Amount = P 1+ R x 1+ R
100 100
6. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year
respectively.
R1 R2 R3
Then, Amount = P 1 + 1+ 1+ .
100 100 100
7. Present worth of Rs. x due n years hence is given by:
x
Present Worth = R .
1+
100

Exercise :: Compound Interest - General Questions

1. 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
Explanation:
5 2 5
Amount = Rs. 1600 x 1 + 2 x 100 + 1600 x 1 + 2 x 100

41 41 41
= Rs. 1600 x x + 1600 x
40 40 40

41 41
= Rs. 1600 x 40 40 + 1

1600 x 41 x 81
= Rs.
40 x 40

= Rs. 3321.

C.I. = Rs. (3321 - 3200) = Rs. 121

The difference between simple and compound interests compounded annually on a certain
sum of money for 2 years at 4% per annum is Re. 1. The sum (in Rs.) is:
A. 625

B. 630

C. 640

D. 650
Answer: Option A
Explanation:
Let the sum be Rs. x. Then,
4 2 676 51
C.I. = x 1 + 100 -x = 625x - x = 625x.

xx4x2 2x
S.I. = = .
100 25

51x 2x
- =1
625 25
x = 625.
There is 60% increase in an amount in 6 years at simple interest. What will be the compound
interest of Rs. 12,000 after 3 years at the same rate?
 A. Rs. 2160

B. Rs. 3120

C. Rs. 3972

D. Rs. 6240

E. None of these
Answer: Option C
Explanation:
Let P = Rs. 100. Then, S.I. Rs. 60 and T = 6 years.
100 x 60
R= = 10% p.a.
100 x 6
Now, P = Rs. 12000. T = 3 years and R = 10% p.a.
10 3
C.I. = Rs. 12000 x 1 + 100 -1

331
= Rs. 12000 x
1000

= 3972.

What is the difference between the compound interests on Rs. 5000 for 1 years at 4% per
annum compounded yearly and half-yearly?
A. Rs. 2.04

B. Rs. 3.06

C. Rs. 4.80

D. Rs. 8.30
Answer: Option A
Explanation:
C.I. when interest 4 x4
= Rs. 5000 x 1+ x 1+
compounded yearly
100 100

26 51
= Rs. 5000 x x
25 50

= Rs. 5304.

C.I. when interest is 2 3

= Rs. 5000 x 1 + 100
compounded half-yearly

51 51 51
= Rs. 5000 x x x
50 50 50

= Rs. 5306.04
 Difference = Rs. (5306.04 - 5304) = Rs. 2.04
The compound interest on Rs. 30,000 at 7% per annum is Rs. 4347. The period (in years) is:
A. 2

1
B. 2
2

C. 3

D. 4
Answer: Option A
Explanation:
Amount = Rs. (30000 + 4347) = Rs. 34347.
Let the time be n years.
7 n
Then, 30000 1 + = 34347
100

107 n 34347 11449 107 2

= = =
100 30000 10000 100
n = 2 years.
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

E. None of these
Answer: Option C
Explanation:
12 3
Amount = Rs. 25000 x 1 + 100

28 28 28
= Rs. 25000 x x x
25 25 25

= Rs. 35123.20

C.I. = Rs. (35123.20 - 25000) = Rs. 10123.20

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
Explanation:
Let the rate be R% p.a.
 R 2
Then, 1200 x 1+ = 1348.32
100

R 2 134832 11236
1+ = =
100 120000 10000

R 2 106 2
1+ =
100 100

R 106
1+ =
100 100
R = 6%
The least number of complete years in which a sum of money put out at 20% compound
interest will be more than doubled is:
A. 3

B. 4

C. 5

D. 6
Answer: Option B
Explanation:
20 n 6 n
P 1+ > 2P > 2.
100 5

6 6 6 6
Now, x x x > 2.
5 5 5 5
So, n = 4 years.
Albert invested an amount of Rs. 8000 in a fixed deposit scheme for 2 years at compound
interest rate 5 p.c.p.a. How much amount will Albert get on maturity of the fixed deposit?
A. Rs. 8600

B. Rs. 8620

C. Rs. 8820

D. None of these
Answer: Option C
Explanation:
5 2
Amount = Rs. 8000 x 1 + 100

21 21
= Rs. 8000 x x
20 20

= Rs. 8820.

The effective annual rate of interest corresponding to a nominal rate of 6% per annum
payable half-yearly is:
A. 6.06%
 B. 6.07%

C. 6.08%

D. 6.09%
Answer: Option D
Explanation:
Amount of Rs. 100 for 1 year 3 2
= Rs. 100 x 1 + 100 = Rs. 106.09
when compounded half-yearly
Effective rate = (106.09 - 100)% = 6.09%

Simple interest on a certain sum of money for 3 years at 8% per annum is half the compound
interest on Rs. 4000 for 2 years at 10% per annum. The sum placed on simple interest is:
A. Rs. 1550

B. Rs. 1650

C. Rs. 1750

D. Rs. 2000
Answer: Option C
Explanation:
10 2
C.I. = Rs. 4000 x 1 + 100 - 4000

11 11
= Rs. 4000 x x - 4000
10 10

= Rs. 840.

420 x 100
Sum = Rs. = Rs. 1750.
3x8

1If the simple interest on a sum of money for 2 years at 5% per annum is Rs. 50, what is the
2compound interest on the same at the same rate and for the same time?
. A. Rs. 51.25

B. Rs. 52

C. Rs. 54.25

D. Rs. 60
Answer: Option A
Explanation:
50 x 100
Sum = Rs. = Rs. 500.
2x5
5 2
Amount = Rs. 500 x 1 + 100
 21 21
= Rs. 500 x x
20 20

= Rs. 551.25

C.I. = Rs. (551.25 - 500) = Rs. 51.25

1The difference between simple interest and compound on Rs. 1200 for one year at 10% per
3annum reckoned half-yearly is:
. A. Rs. 2.50

B. Rs. 3

C. Rs. 3.75

D. Rs. 4

E. None of these
Answer: Option B
Explanation:
1200 x 10 x 1
S.I. = Rs = Rs. 120.
100
5 2
C.I. = Rs. 1200 x 1 + 100 - 1200 = Rs. 123.

Difference = Rs. (123 - 120) = Rs. 3.

The difference between compound interest and simple interest on an amount of Rs. 15,000 for 2
years is Rs. 96. What is the rate of interest per annum?
A. 8

B. 10

C. 12

D. Cannot be determined

E. None of these
Answer: Option A
Explanation:
R 2 15000 x R x 2
15000 x 1 + 100 - 15000 - 100 = 96

R 2 2R
15000 1 + 100 - 1 - 100 = 96

(100 + R)2 - 10000 - (200 x R)

15000 = 96
10000

96 x 2
R2 = = 64
3
 R = 8.
Rate = 8%.

1The compound interest on a certain sum for 2 years at 10% per annum is Rs. 525. The simple
5interest on the same sum for double the time at half the rate percent per annum is:
. A. Rs. 400

B. Rs. 500

C. Rs. 600

D. Rs. 800
Answer: Option B
Explanation:
Let the sum be Rs. P.
10 2
Then, P 1 + 100 -P = 525

11 2
P 10 -1 = 525

525 x 100
P= = 2500.
21
Sum = Rs . 2500.
2500 x 5 x 4
So, S.I. = Rs. = Rs. 500
100

Compound Interest - Data Sufficiency 1

Exercise :: Compound Interest - Important Formulas

1. Let Principal = P, Rate = R% per annum, Time = n years.

2. When interest is compound Annually:
R n
Amount = P 1 +
100
3. When interest is compounded Half-yearly:
(R/2) 2n
Amount = P 1 +
100
4. When interest is compounded Quarterly:
(R/4) 4n
Amount = P 1 +
100

5. When interest is compounded Annually but time is in fraction, say 3 years.

3
Amount = P 1+ R x 1+ R
100 100
6. When Rates are different for different years, say R1%, R2%, R3% for 1st, 2nd and 3rd year
respectively.
Then, Amount = P 1 + R1 1 + R2 1 + R3 .
 100 100 100

7. Present worth of Rs. x due n years hence is given by:

x
Present Worth = R .
1+
100

Compound Interest - Data Sufficiency 1

1What is the rate of compound interest?
.
I. The principal was invested for 4 years.

II. The earned interest was Rs. 1491.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option D
Explanation:
Let Principal = Rs. P and Rate = R% p.a. Then,
R 4
Amount = Rs. P 1+
100
R 4
C.I. = P 1+ -1
100
R 4
P 1+ -1 = 1491.
100

Clearly, it does not give the answer.

Correct answer is (D).
What will be compounded amount?
 I. Rs. 200 was borrowed for 192 months at 6% compounded annually.

II. Rs. 200 was borrowed for 16 years at 6%.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option C

Explanation:
6 16
I. Amount = Rs. 200 x 1+
100

6 16
II. Amount = Rs. 200 x 1+
100

Thus, I as well as II gives the answer.

Correct answer is (C).
An amount of money was lent for 3 years. What will be the difference between the simple and
the compound interest earned on it at the same rate?

I. The rate of interest was 8 p.c.p.a.

II. The total amount of simple interest was Rs. 1200.

A. I alone sufficient while II alone not sufficient to answer

B. II alone sufficient while I alone not sufficient to answer

C. Either I or II alone sufficient to answer

D. Both I and II are not sufficient to answer

E. Both I and II are necessary to answer

Answer: Option E
Explanation:
Given: T = 3 years.
I. gives: R = 8% p.a.
II. gives: S.I. = Rs. 1200.
Thus, P = Rs. 5000, R = 8% p.a. and T = 3 years.
Difference between C.I. and S.I. may be obtained.
So, the correct answer is (E).

What is the rate of interest p.c.p.a.?

I. An amount doubles itself in 5 years on simple interest.

II. Difference between the compound interest and the simple interest earned on a certain
amount in 2 years is Rs. 400.

III. Simple interest earned per annum is Rs. 2000.

A. I only

B. II and III only

C. All I, II and III

D. Any two of the three

E. I only or II and III only

Answer: Option E
Explanation:
PxRx5
I. =P R = 20.
100

R 2 PxRx2
II. P 1+ -P- = 400 PR2 = 4000000.
100 100

PxRx1
III. = 2000 PR = 200000.
100

PR2 = 4000000 R = 20.

 PR 200000
Thus I only or (II and III) give answer.
Correct answer is (E).
What will be the compound interest earned on an amount of Rs. 5000 in 2 years?

I. The simple interest on the same amount at the same rate of interest in 5 years is Rs. 2000.

II. The compound interest and the simple interest earned in one year is the same.

III. The amount becomed more than double on compound interest in 10 years.

A. I only

B. I and II only

C. II and III only

D. I and III only

E. None of these

Answer: Option A
Explanation:
P = Rs. 5000 & T = 2 years.
I. S.I. on Rs. 5000 in 5 years is Rs. 2000.
5000 x R x 5
= 2000 R = 8.
100
Thus I only gives the answer.
Correct answer is (A).

1. Mr. Gupta borrowed a sum of money on compound interest. What will be the amount to be
repaid if he is repaying the entire amount at the end of 2 years?

I. The rate of interest is 5 p.c.p.a.

II. Simple interest fetched on the same amount in one year is Rs. 600.

III. The amount borrowed is 10 times the simple interest in 2 years.

A. I only

B. III only
 C. I or II only

D. II and Either I or III only

E. All I, II and III are required

Answer: Option D
Explanation:
I. gives, Rate = 5% p.a.
II. gives, S.I. for 1 year = Rs. 600.
III. gives, sum = 10 x (S.I. for 2 years).
Now I, and II give the sum.
For this sum, C.I. and hence amount can be obtained.
Thus, III is redundant.
Again, II gives S.I. for 2 years = Rs. (600 x 2) = Rs. 1200.
Now, from III, Sum = Rs. (10 x 1200) = Rs . 12000.
100 x 1200
Thus, Rate = = 5% p.a.
2 x 12000

Thus, C.I. for 2 years and therefore, amount can be obtained.

Thus, I is redundant.
Hence, I or III redundant.

2. What is the compound interest earned at the end of 3 years?

I. Simple interest earned on that amount at the same rate and for the same period is Rs.
4500.

II. The rate of interest is 10 p.c.p.a.

III. Compound interest for 3 years is more than the simple interest for that period by Rs. 465.

A. I and II only

B. II and III only

C. I and III only

D. I and Either II or III only

E. Any two of the three

Answer: Option D
Explanation:
 I. gives, S.I for 3 years = Rs. 4500.
II. gives, Rate = 10% p.a.
III. gives, (C.I.) - (S.I.) = Rs. 465.
Clearly, using I and III we get C.I. = Rs. (465 + 4500).
Thus, II is redundant.
100 x 4500
Also, from I and II, we get sum = = 15000.
10 x 3

Now C.I. on Rs. 15000 at 10% p.a. for 3 years may be obtained.
Thus, III is redundant.
Either II or III is redundant.

Data Sufficiency
Q2.Direction: A question is given followed by the information in three statements.
You have to decide the information in which of the statements is necessary and
sufficient to answer the question and mark answer accordingly.
What will be the ratio between the two digits in the two digit number?
Statements:
I. The largest digit is 9.
II. The sum of the digits in the number is 3 times their difference.
A) I alone is sufficient while II alone is not sufficient.

B) II alone is sufficient while I alone is not sufficient.

C) Either I or II is sufficient.

D) Neither I nor II is sufficient.

E) Both I and II are sufficient

Three friends, A, B and C started a partnership business investing money in the ratio
of 3: 2: 1 respectively for a period of 3 years. What is the amount received by C as his
share of profit?
Statements:
I. Total amount invested in the business in Rs. 24,750.
II. Profit earned at the end of 3 years is 2/3 of the total investment.
III. The average amount of profit earned per year is Rs. 5500.
A) I or II or III.

B) Either III only, or I and II together.

C) Any two of the three.

D) All I, II and III are required.

 E) None of these
16 men and 28 women are working together on a construction site. After working for
3 days, 10 men and 16 women leave the work. How many more days will be required
to complete the work?
Statements:
I. 38 men and 24 women together can complete the work in 9 days.
II. 32 men can complete two-third of the work in 8 days.
III. In 2 days, the work done by six men in equal to the work done by eight women.
A) I only.

B) II only.

C) III only.

D) I or II or III
What is the length of a running train A crossing another running train B?
Statements:
I. These two trains take 24 seconds to cross each other.
II. These trains are running in opposite directions.
III. The length of the train A is 360 metres.
A) Even with I, II and III, the answer cannot be obtained.

B) I only

C) II only

D) III only

E) All I, II and III are required.

E) II or III only
Who among men, women or boys will complete same piece of work the fastest?
Statements:
I. 18 men and 16 women can complete the piece of work in 24 days.
II. 24 men and 18 boys can complete the same piece of work in 32 days.
III. 20 women and 18 girls can complete the same piece of work 22.5 days.
A) Any two of the three

B) Question cannot be answered even with the information given in all three statements

C) All I, II and III

D) Both I and II

E) Both II and III