Test Papers – ICSE – Class – X
MBA Entrance Quantitative Aptitude, Simple and Compound Interest, Module 4
Hello friends welcome to this session in this session let’s see what do we mean by different time periods for compounding, you have an example here, a sum of rupees 10000 is kept at 40% per annum compound interest. Find the total interest earned and total amount accrued at the end of year 1, if the compounding happens first annually then half yearly and then quarterly. What do you mean by annually half yearly and quarterly in case of annually the compounding happens only at the end of year that is in one year compounding will happen only once in half yearly yes it will happen every 6 months so in one year it will happen twice and in quarterly it will happen 4 times in a year let’s see how my rate of interest will change if the number of compounding period has changed. In annual the number of compounding will be one and the rate of interest will be 40% As given in the sum there in half yearly number of compounding will be 2 every 6 months and rate of interest as you can see is now 20% that is half of my annual rate of interest and interestingly in quarterly number of compounding is 4, rate of interest is one fourth of that my annual rate of interest that is 10% let’s see how to solve this sum.
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MBA Entrance Quantitative Aptitude, Simple and Compound Interest, Module 3
hello friends welcome to this session, in this session let’s see what do we mean by multiplicity of principal, ok so do you realize that I am investing some money in simple interest at a principal of P and at a rate of interest as r, so after some years my interest amount will grow and it will become 2 times that of my principal amount or in other words my interests I is equal to 200% of my P what was the amount yes, amount is Principal plus interest so in this case amount will be P+I that is nothing but P+ twice that of p which is equal to 3 P so here my amount has become thrice of that of my principal that is what we mean by multiplicity of principal that my principal is becoming three times a year similarly if my interest grows on to be 300% of my principal amount then my amount will be 4 times P or A will be 4times my principal, let’s take it to general form so if my amount A = n x p then I = (n-1)x100% as you can see here if A is 3p then I is 200%, A is 4p then I is 300% let’s go ahead you remember this graph yes this is the simple interest and as you can see here amount changes linearly or the difference between any two consecutive years is the same now do you realise one more fact that interest is directly proportional to the number of years that means if in year 2 i am earning some interest then in year 4 the interest that I will earn will be proportionate that is interest is directly proportional to number of years, now let’s look at this, principle becomes n time in n years for example principal becomes 3 times in 7 years so what do you think interest will be yes interest will be n-1x 100% as we have seen in the earlier slide, now if I am earning interest of n – 1 x100 % in n years how much interest I will earn in one year.
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MBA Entrance Quantitative Aptitude, Simple and Compound Interest, Module 2
hello friends, welcome to this session, let’s see introduction to compound interest, in previous session we saw simple interest so what is the difference between simple interest and compound interest, in simple interest the principal remains constant and interest also remain constant over the years but in compound interest every time interest will get added to the principal giving rise to increase interest every year let’s see how, this is my initial principal P so in Year 1, I will earn the interest of R percent of P that is my principal amount to get me the first amount that is A1 as P + r% of P, i can write that has P (1 + r/100) now what will happen in year 2, very very interesting, for year 2 the amount in my first year will become principal of my 2nd year and now I will earn interest on that amount as r% of A1 and I can write A2= A1+r% of A1 or in terms of P I can write P (1+r/100) raised to 2 and this I can now right for A3 and A4 also in year 3 what will happen A3 will be A2+r% of A2 or P(1+r/100)cube similarly for A4 the amount in my 3rd year will happen to be principal for my 4th year to give rise to the equation A 4 is equal to P(1 + r/100) raise to 4, do you realise every year my interest is getting added to the principal giving rise to increase interest every year, if I generalizes this amount in any nth year will be P(1 + r/100) raise to N and 1 more interesting phenomenon, amount and interest are changing geometrical in simple interest yes it was linear here it is in geometry proportion with the ratio same that is 1+r/100 so in any two successive amounts the ratio will always be same that is 1 + r/100 let’s go ahead, now what is this n this is number of years, no this is my time period 1, time period 2, time period 3 and 4 so n will always represent the number of compounding time periods and it is not going to be number of years very very important point to remember let’s go ahead let’s take a simple example.
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MBA Entrance Quantitative Aptitude, Simple and Compound Interest, Module 1
hello friends welcome to the session, in this session let’s see introduction to simple interest, now what do you mean by an interest, right so interest is something which we pay if we borrow some money from bank that is loan, on a loan we pay interest or if I am investing my money somewhere I get an interest so as you rightly said interest is nothing but returns you get on your investment or extra amount you pay on your loan now why do we pay this is because time value of money now what is time value of money that is a different chapter altogether but you just remember time value of money becomes important and that gives rise to the interest payments let’s go ahead, simple interest in simple interest as you all know we pay fixed interest every year and interest rate is typically denoted by R percent and P is my principal of course so I will pay R percent of P every year, let’s say this is my principal in initial year what will happen after year one after year one I will pay R percent of P as my interest what will happen in year 2, in year 2 again I will pay R percent of P that is the same interest I will be pay after year 2 also what will happen in year 3 and year 4 yes as you rightly guessed I will again pay R percent of P in my Year 3 and R percent of P in my Year 4 so if I am paying R percent of P every year how much interest I will pay in N Years.
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MBA Entrance Quantitative Aptitude, Profit Loss Discount, Module 2
Hello once again this session is based on concept of marked price which comes under profit, loss and discount, now to understand this concept let’s say you are at Fashion Street you are buying a article which is initially priced at rs 150, now at Fashion Street if you have good bargaining skills if you have good negotiation skills you can break down the price of that article at even less than 50% of the initial price let’s say by bargaining you are able to get down at rupees 120 what do you think now is the shopkeeper making a loss here by selling it at rs 120 looking at the face it seems that he is making a loss but now look at the smile on his face he is still making a profit because the cost price for him is rupees 100 that is after buying it at rupees 100 he is adding some value to it and after that value addition the price which we get is initial price now this initial price or packaged price or MRP all this term represents the marked price that is the value which is added on cost price is called as mark up and now after selling at rupees 120 he makes a profit of rupees 20 now that reduction from 150 to 120 is called as discount which is 30 rupees so let us revisit all this terms the shop keeper cost price is rupees 100 he adds value to it that is mark up of 50 rupees and then we get the marked price as rupees 150 the mark up is defined as marked price minus cost price now he gives a discount of 30 rupees and then we get the selling price this discount is defined as marked price minus selling price and by selling it at rupees 120 he makes a profit which is defined as selling price minus cost price so we have introduce three new terms one mark up second is discount and the third is profit which you already know let us calculate all of them in terms of percentage, percentage profit you know that , that is defined as (profit % = profit/Cost price*100) which is 20/100*100 which is 1/5 which is 20%. Now percentage discount is always calculated on the base of marked price and hence discount /marked price* 100 which is 30/150*100 which is 1/5 which is also 20% the way we calculate percentage profit and percentage loss on base of cost price the same way we calculate percentage mark up also on the base of cost price i.e mark up/Cost Price* 100 i.e 50/100*100 i.e ½ which is 50% so that’s the concept of marked price. Now let us consider the statement a shopkeeper sells an article at 25 % discount there are different methods to evaluate.
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MBA Entrance Quantitative Aptitude, Profit Loss Discount, Module 1
Hello everyone today we are going to start with the session called introduction to profit and loss which comes under profit loss and discount now this session is an application of percentages and hence the base required for the session is one is reciprocals and its percentages and the second is percentage increase and percentage decrease so let’s begin with some basic definitions I can say the price at which we buy the article is the cost price and the price in which we sell the article is the selling price if the selling price is more than the cost price that I can say is a case of profit and if the selling price is less than the cost price then I can say is a case of loss now I am considering an example here there is a Anand sandwich seller he is able to buy the raw material required to make sandwich at rupees 120 now using this raw materials he is able to make 6 sandwiches each one he sells at rupees 25 so can I say the total selling price is a 25×6 that is 150 rupees yes now suppose if he is buying at 120 and he is selling at 150 so can I say its a case of profit that is profit is nothing but selling price minus cost price that is 150 – 120 that is 30 rupees the base for calculating percentage profit is cost price and hence percentage profit is profit upon cost price into 100 in our case the profit is 30 on the base of 120×100 can I say 30/120 is 1 by 4 and 1 by 4 in percentage is 25% now let us consider the second situation the 2nd situation is is buying the raw material at 120 but in this case is able to make only 4 sandwiches so can I say the selling price would be 25×4 that is 100 rupees now he is buying at 120 is selling at 100 rupees so can I say he is making a lost here this loss is hence defined as cost price minus selling price that is in our case 120 minus 100 that is 20 rupees the percentage loss is again on the base of cost price that is loss supon cost price into 100 in our case 20/120 into 100 can I say 20/120 is 1 upon 6 that is 1 upon 6 in percentage is 16.67 percentage the learning from these two examples is first profit is selling price minus cost price and loss is cost price minus selling price and both percentage profit and percentage loss are calculated on the base of cost price so that it shows that the base for calculating profit or loss percentage is always the cost price now let’s begin with one statement that is a shopkeeper sells an article for 20% profit how can we evaluate this statement there are four methods to work with the first method is.
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