Practice Questions Lecture 4-6

Lecture No. 4

Question 1:
If the Basic salary of an employee is Rs. 22000. What is the total saving per month of the
employee on account of Provident Trust Fund?
Solution:

Total savings of employee in Provident Fund = 4000 Rs.

Question 2:
The mean of the numbers 16,10, 8 and x is 12; find the value of x.

Answer: x=14

Question 3:
Sam wants to buy a new camera, and decides on the following rating system:

 Image Quality 50%

 Battery Life 30%
 Zoom Range 20%

The Cony camera gets 8 (out of 10) for Image Quality, 6 for Battery Life and 7 for Zoom Range
The Sanon camera gets 9 for Image Quality, 4 for Battery Life and 6 for Zoom Range
Which camera is best?

Solution:
Weighted mean for Cony: = 7.2
Weighted mean for Sanon: = 6.9
Sam decides to buy the Cony.

Question 4:

Calculate the weighted average for the following data.

 Value Weight
100 0.1
200 0.2
300 0.3
400 0.2
500 0.2

Solution:

weighted average 
xw i i
 320
w i

Question 5:

What will be the Gross salary of a person whose basic salary is 8,000.

Hint: Gross salary = basic salary + house rent + conveyance allowance + Utility allowance

Answer:

Gross salary = 12,000

Lecture No. 5

Question 1:

A pair of glasses went from $5 to $6, what is the percentage change?

Answer: 20% rise.

Question 2:

The price of a water heater was $150 and is increased by 15 %. Calculate the New Price?

Answer: $172.5
Question 3:

A company signs a three year collective agreement that provides for the salary increase of 3%,
2%, and 1% in successive years. If an employee is currently earning 5000 rupees per month,
What will be the salary per month at the end of the term of the contract?

Answer: Rs 5305.53

Question 4:

If for a sewing machine the price is increased by 10% in 2005 and after a year, in 2006, the item price
reduced by 15%. If the Sale Price of the item is Rs 4500 currently then find the original price at the
beginning of 2005.

Solution:

Let the original price = x

Then the price after 10% increase will be
P1  x  10% x
P1  x  0.1x
P1  1.1x
Let P2 be the price after 15% reduction, then
P2  P1  15% P1
P2  P1  0.15 P1
P2  1.1x  (0.15)(1.1x)
P2  0.935 x
But it is given in the statement that P2  4500 , so
4500  0.935 x
x  4812.8
Thus, the original price of the machine was 4812.8.

Lecture No. 6

Question 1:
Find the Discount when price is 3000 and discount rate is 12.5%.

Answer: Discount = 375

Question 2:

If you invested Rs.80,000 at the rate of 11% per annum for 8 years. Calculate simple as well as
compound interest of the amount.

Solution:

For simple interest, we use

I= (P*R*T)/100,
Where I= simple interest
P= principal
R= rate of interest percent per annum
T= time in years
Here
I= (80,000*11*8)/100= Rs. 70400
For compound interest, we use
S= P(1+r/100)^n,
Where S= compound interest
P= principal
r= rate of interest
n= time in years
Here
S= 80,000(1+11/100) ^8= Rs.184363.02

Question 3:

The price of book I and book II are Rs 800 and Rs 650 respectively. If the same discount is given on both
books, then price of book I will be 3 times greater than the price of book II. What is the discount
offered?

Solution:

Price of book I = Rs 800

Price of book II = Rs 650
By the condition,

800 - d = 3 ( 650 - d )
800 - d = 1950 - 3d
3d - d = 1950 - 800
d= 575
Question 4:

1
7
If a bank allow to lend a loan of amount of 3, 00,000 for a time period of 4 years and 4months at 2%
per anum, then find simple interest to be paid by borrower.

Solution:

Principal = P = 300000
1 15 1 15
7  
Rate =R = 2 % per annum = 2 100 200

4 52
4 
Time = T= 4 years and 4 months = 12 12
15 52
300000       97500   
Interest = P*R*T = 200 12

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