Aptitude and Reasoning Questions

Q:

A merchant receives an invoice for a motor boat for $20 000 with terms 4/30, n/100. What is the highest simple interest rate at which he can afford to borrow money in order to take advantage of the discount?

A) 247.67 B) 237.67
C) 227.67 D) 215.67
 
Answer & Explanation Answer: A) 247.67

Explanation:

Suppose the merchant will take advantage of the cash discount of 4% of $20 000 = $800 by paying the bill within 30 days from the date of invoice. He needs to borrow $20 000 = $800 = $19 200. He would borrow this money on day 30 and repay it on day 100 (the day the original invoice is due) resulting in a 70-day loan. The interest he should be willing to pay on borrowed money should not exceed the cash discount $800.

 

r=I/pt=21.73%

 

The highest simple interest rate at which the merchant can afford to borrow money is 21.73%. This is a break-even rate. If he can borrow money, say at a rate of 15%, he should do so. He would borrow $19 200 for 70 days at 15%. Maturity value of the loan is $19 200(1+0.15(70/365))=$19 752.33

 

savings would be $20 000 − $19 752.33 = $247.67

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Filed Under: Simple Interest
Exam Prep: Bank Exams
Job Role: Bank PO

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Q:

The following question consist of two words each that have a certain relationship to each other, followed by lettered pairs of words.Select the lettered pair that has the same relationship as the original pair of words.

Pedant  :  Erudition

A) Blunt : Politician B) Enemy : Friendly
C) Diplomat : Tactless D) Prude : Modesty
 
Answer & Explanation Answer: D) Prude : Modesty

Explanation:

A pedant is a person who makes a display of erudition ( scholarly learning). Similarly , a prude is a woman who makes display of modesty.

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Filed Under: Analogy

9 5101
Q:

Mohan, Ritika, Janvi, Priya and Riya are friends. Janvi runs faster than Ritika but slower than Priya. Mohan is the slowest runner and Riya runs faster than Priya. Who runs the fastest among the five?

A) Priya B) Riya
C) Ritika D) Mohan
 
Answer & Explanation Answer: B) Riya

Explanation:
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Filed Under: Arithmetical Reasoning
Exam Prep: Bank Exams

3 5097
Q:

A family consists of six members P, Q, R, S, T and U. There are two married couples. Q is a doctor and the father of T. U is grandfather of R and is a contractor. S is grandmother of T and is a housewife. There is one doctor, one contractor, one nurse, one housewife and two students in the family. What is the profession of P ? 

A) Doctor B) Nurse
C) Housewife D) None of these
 
Answer & Explanation Answer: B) Nurse

Explanation:

Q, the Doctor, is the father of T. S, the Housewife, is the grandmother of T and hence the mother of Q. Since there are only two married couples one being that of Q, the grandfather of R. i.e, U must be married to S. Thus, R and T will be both children of Q and these must be the students So, P, who remains, shall be the wife of Q and she alone can be the nurse. Thus, U must be the contractor 

P is the nurse. 

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Filed Under: Blood Relations

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Q:

The price of commodity X increases by 60 rupees every year, while the price of commodity Y increases by 20 rupees every year. If in 2002, the price of commodity X was Rs. 320 and that of Y was Rs. 740, in which year commodity X will cost 60 rupees more than the commodity Y ?

A) 2011 B) 2014
C) 2012 D) 2017
 
Answer & Explanation Answer: B) 2014

Explanation:

If After p years , commodity X will cost 60 rupees more than the commodity Y, then

320 + 60p = 740 + 20p + 60
=> p = 12

So in year (2002 + 12 = 2014), commodity X will cost Rs.60 more than the commodity Y.

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Filed Under: Arithmetical Reasoning
Exam Prep: Bank Exams , CAT , GATE
Job Role: Bank Clerk , Bank PO

2 5094
Q:

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

A) Rs.51.25 B) Rs.61.25
C) Rs.51 D) Rs.42
 
Answer & Explanation Answer: A) Rs.51.25

Explanation:

Sum = Rs.(50*100)/2*5=Rs.500

Amount=Rs.[500*(1+5/100)2]

= Rs. 551.25

 

 C.I = Rs.(551.25-500)= Rs.51.25

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Filed Under: Compound Interest
Exam Prep: Bank Exams
Job Role: Bank PO

0 5090
Q:

Which of the following statement(s) is/are TRUE?

I. The total number of positive factors of 72 is 12.
II. The sum of first 20 odd numbers is 400.
III. Largest two digit prime number is 97.

A) Only I and II B) Only II and III
C) Only I and III D) All are true.
 
Answer & Explanation Answer: D) All are true.

Explanation:
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Q:

The office building needs repairing just as urgently as it needs internal as well as external painting

Assumptions:

1. Efficiency of people working in the office cannot be improved unless office building is reapaire

2. Repairing and painting of office building require funds

A) Only 1 is true B) Only 2 is true
C) Either 1 or 2 is true D) Neither 1 nor 2 is true
 
Answer & Explanation Answer: D) Neither 1 nor 2 is true

Explanation:

Nothing can be deduced regarding the effect of reapirs of office building on efficency of workers,or the requirement of funds for repairs,from the given statement.So,neither 1 nor 2 is true

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Filed Under: Statement and Assumptions
Exam Prep: GRE

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