TARGET CAT 2024

MBA Pioneer 2024

QUANT - I
Simple & Compound
Interest 1
Lecture No.- 06

By- VINIT KAKRIYA SIR

 Recap of Previous Lecture :
1) Partnership :

If A, B and C are working as partners in a business, then the profit is distributed

among partners, on the basis of,
“ Product of Investment & Period of Investment “

Note: If Period of Investment is same for all Partners, then we can ignore it while
finding Profit Ratio
Recap of Previous Lecture :
 Recap of Previous Lecture :
2) Variation :

a) If A & B are directly proportional to each other, then we can say that
𝐴1 𝐵1
=
𝐴2 𝐵2

b) If A & B are inversely proportional to each other, then we can say that
𝐴1 𝐵2
=
𝐴2 𝐵1

c) If A is directly proportional to B and inversely proportional to C, then we can say that

𝐴1 𝐵1 𝐶2
= ×
𝐴2 𝐵2 𝐶1
Recap of Previous Lecture :
 to be covered
1) Numerical based on ‘Variation’

2) Concept & Numerical based on ‘Simple Interest’

3) Problems for Practice & CAT PYQs

“Telegram Group for Doubts Solving”

MBA Wallah Doubt Solving Group
QUESTION- 1

#Q. Centripetal force is directly proportional to the square of velocity when the
radius is constant & inversely proportional to the radius when velocity is constant.
The centripetal force is 13N when the velocity is 11m/s and radius is 121m. Find the
centripetal force (in N) if the velocity is 7m/s and radius is 26m

A 22.5

B 23.5

C 24.5

D 25.5
QUESTION- 2

#Q. On planet Namek, the time period of oscillation of a pendulum varies directly as
the cube root of its length and inversely as the square root of the acceleration due to
gravity. Find the percentage change in the time period of oscillation if the length of
the pendulum is increased by 174.4% and the acceleration due to gravity becomes 4
times.

A 25% increase

B 20% decrease

C 30% decrease

D 40% increase
QUESTION- 3

#Q. The Lucknow Indore Express without it rake can go 24 km an hour, and the
speed is diminished by a quantity that varies as the square root of the number of
wagons attached. If it is known that with four wagons its speed is 20 km/h, the
greatest number of wagons with which the engine can just move is

A 144

B 140

C 143

D 124
Simple & Compound Interest
Simple & Compound Interest :
Simple Interest :
Simple Interest :
Simple Interest :
 Simple Interest :

Example: 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?
 Simple Interest :

Example: A man borrowed some money, after 3 years he paid Rs. 10400 with 10%
interest, then how much money he borrowed?
QUESTION- 1

#Q. 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 8%

D None of these
QUESTION- 2

#Q. A person borrows Rs. 5000 for 2 years at 4% p.a. simple interest. He
1
immediately lends it to another person at 6 % p.a. for 2 years. Find his gain in the
4
transaction per year.

A Rs. 112.50

B Rs. 125

C Rs. 225

D Rs. 167.50
QUESTION- 3

#Q. 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%

C 8%

D 10 %
QUESTION- 4

#Q. Mr. Surana invested an amount of Rs. 13900 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
QUESTION- 5

#Q. Three friends Sudama, Piyush and Aryan won a lottery of Rs 15,400 and they
wish to split the amount among themselves in such a way that, after 1, 2, and 3 years,
respectively, the simple interest on each share at 5% per year remains the same.
Differences in Sudama and Aryan’s share will be:
QUESTION- 6

#Q. In 2020, Eli places Rs. 20,000 in a 5-year deposit (Deposit A) that earns simple
interest of 15% per annum. In 2023, she wants to place a 2-year deposit (Deposit B)
that will provide the same amount at the end of 2025 as Deposit A. If Deposit B earns
simple interest at 30% per annum, what is the principal (in Rs.) required for Deposit
B?
QUESTION- 7

#Q. Veeru invested Rs 10000 at 5% simple annual interest, and exactly after two
years, Joy invested Rs 8000 at 10% simple annual interest. How many years after
Veeru’s investment, will their balances, i.e., principal plus accumulated interest, be
equal? [CAT 2020 : Slot 1]
QUESTION- 8

#Q. Nitu has an initial capital of Rs. 20000. Out of this, she invests Rs. 8000 at 5.5%
in bank A, Rs. 5000 at 5.6% in bank B and the remaining amount x% in bank C, each
rate being simple interest per annum. Her combined annual interest income from
these investments is equal to 5% of the initial capital. If she had invested her entire
initial capital in bank C alone, then her annual interest income, in rupees, would have
been [CAT 2022 : Slot 3]

A 900

B 700

C 1000

D 800
QUESTION- 9

#Q. Mr. Pinto invests one-fifth of his capital at 6%, one-third at 10% and the
remaining at 1%, each rate being simple interest per annum. Then, the minimum
number of years required for the cumulative interest income from these investments
to equal or exceed his initial capital is
[CAT 2022 : Slot 2]
QUESTION- 10

#Q. A person invested a total amount of Rs 15 lakh. A part of it was invested in a

fixed deposit earning 6% annual interest, and the remaining amount was invested in
two other deposits in the ratio 2 : 1, earning annual interest at the rates of 4% and
3%, respectively. If the total annual interest income is Rs 76000 then the amount (in
Rs lakh) invested in the fixed deposit was [TITA] [CAT 2019 : Slot 1]
QUESTION- 11

#Q. Alex invested his savings in two parts. The simple interest earned on the first
part at 15% per annum for 4 years is the same as the simple interest earned on the
second part at 12% per annum for 3 years. Then, the percentage of his savings
invested in the first part is [CAT 2022 : Slot 1]

A 62.5 %

B 37.5 %

C 60 %

D 40 %
 2 Mins Summary

1) Numerical based on ‘Variation’

2) Concept & Numerical based on ‘Simple Interest’

3) Problems for Practice & CAT PYQs

“Telegram Group for Doubts Solving”

MBA Wallah Doubt Solving Group
Thank
You