Mrunal (Aptitude) Alligation - Advanced Applications in Interest Rates

Mrunal [Aptitude] Alligation: Advanced applications in Interest rates, Prof...
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[Aptitude] Alligation: Advanced applications in Interest rates, Profit-loss,

Average Wages (Wine-Water Concept)
1.
2.
3.
4.
5.
6.
Case: Loan taken from two banks

Case: Profit on Single commodity
Case: No. of Employees based on Avg Salary
Case: Profit on Two commodities
Summary
Mock Questions
Consider these four questions

1. Dr.Haathi has taken some loan from State bank of India at 8% interest rate per
annum.He has also borrowed some money from ICICI at 10% interest.The total
loan amount is Rs.10,000. He pays total Rs.950 as interest rate at the end of first
year.How much money did he borrow from the State bank of India?
2. Jethalal purchased some mobile phone memory cards for Rs.1000. He sold
memory cards worth rupees worth Rs.400 at 10% profit.At what percent profit
should he sell the remaining memory cards, to gain overall profit of 20%?
3. Roshan Singh Sodhi is the owner of a big hotel. The average salary of all
employees is Rs.8500. The average salary of 7 cooks is Rs.10,000.If the average
salary of remaining employees, is Rs. 7800. Find the total number of people
employed by Roshan Singh Sodhi.
4. Bhide master bought a set of laptop and printer for Rs.20000.He sold the laptop
for 20% profit and printer for 10% loss.Overall, he made 2% profit. Find the cost
price of laptop.
Superficially, ^these questions seem different from one another. But if you pay
close attention, these are all problems of weighted average.
We can quickly solve them using the allegation (wine and water mixture) method.
Case #1: Loan taken from two banks

Dr.Haathi has taken some loan from SBI at 8% interest and ICICI at 10% interest.
The total loan amount is Rs.10,000. He pays total Rs.950 as interest rate at the end of
first year. How much money did he borrow from the SBI
The question is mentioning two interest rates: 8% and 10%
the effective interest rate, that Dr Haathi has to pay, will be in between these two
numbers 8 and 10.
The question also says that he paid Rs.950 as interest rate.
So in terms of percentage he has paid
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(950/10000) x 100 =9.5% interest rate (overall).

Arrange these numbers in to ascending (increasing) order
Interest rate% 8
9.5
10
Bank
SBI Overall ICICI
Now apply the visual move of Wine and water mixture
10-9.5=SBI eq 1
Similarly
9.5-8=ICICI.eq 2 (donot make mistake of 8-9.5 because we donot want negative
difference)
Divide eq. 1 with eq 2
If you simplify this further, you get
SBI / ICICI =1/3
Apply Componendo at bottom
But we know that SBI + ICICI=Rs.10,000 that Dr.Haathi has borrowed!
Plug in the value
SBI /10000 =
Therefore, SBI =10,000/4=Rs.2500
It means Dr.Haathi has borrowed Rs.2500 from SBI Bank.
Verifying the answer and concept

Amount
borrowed
SBI 2500
ICICI 10k-2500=7500
Total 8500
Interest rate
8% of 2500=200
10% of 7500=750
200+750=Rs.950 paid in interest = matches the question
Description!0
Case: Profit on Single commodity

Jethalal purchased some mobile phone memory cards for Rs.1000.
He sold memory cards worth rupees worth Rs.400 at 10% profit.
At what percent profit should he sell the remaining memory cards, to gain overall
profit of 20%?
He already made 10% profit on part of his card.
If he wants to have overall (average) profit of 20% then he must sell the remaining cards
at a profit higher than 20%
The question says he sold cards worth Rs.400 (cost price). Meaning the cost price of
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remaining cards is 1000-400=Rs.600

Draw a table.
Profit
10% 20%
M%
Overall
Cards worth (cost price) 400
1000-400=600
Apply the visual move of wine-water mixture
M-20=400.eq1
20-10=600.eq2 (donot make mistake of 10-20 because we dont want negative)
Now Divide equation 1 with equation 2
Meaning, if Jethalal wants to make overall profit of 20%, he must sell the remaining
memory cards @26 (2/3)% interest rate.
Verifying the answer

Cards already sold
@10% interest
Remaining cards sell
@26 (2/3)
Total profit
10% x 400=Rs.40
26 (2/3)% x 600=Rs.160
Rs 40 +160 =200. And 200 is 20% of Rs.1000 so it
matches our question condition.
Case: No. of Employees based on Avg Salary

Roshan Singh Sodhi is the owner of a big hotel.
The average salary of all employees is Rs.8500.
The average salary of 7 cooks is Rs.10,000.
If the average salary of remaining employees, is Rs. 7800. Find the total number
of people employed by Sodhi.
The question is talking about three sets of salaries
7800 > 8500 (average) >10000
Suppose total number of employees =m.
And we already know there are 7 cooks.
So remaining employees = total minus 7 = m-7.
Draw the table.
Salary (Rs.)
7800 8500 10000

Overall
Employees (total =m) m-7
7 cooks
Apply the visual move
10,000 minus 8500 = (m-7)eq1
8500 minus 7800=7eq2
Now Divide equation 1 with equation 2
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When you simplify this further, you get m=22

Therefore, Total number of employees is 22.
Verification
Number
Cooks 7
Others 15
Total 15+7=22
Avg. salary
10000
7800
Total cost to Sodhi

7 x 10k=70k
1,17,000
70k+1,17,000=1,87,000
Avg salary of all employees

=(Total salary paid)/(Total number of employees)
=187000/22
=Rs.8500 = matches the question condition.
Case: Profit on Two commodities

Bhide master bought a set of laptop and printer for Rs.20000.
He sold the laptop for 20% profit and printer for 10% loss.
Overall, he made 2% profit. Find the cost price of laptop.
Approach
Well take 10% loss =-10%
Now the question is talking about three rates : -10% , +2% (avg) and +20%
Profit/loss -10%
2%
20%
Overall
Cost price Printer
Laptop
Thats it. Just apply the visual move BUT with care!
20 minus 2=printereq 1
Be Careful while approaching second equation
2 minus (-10)=laptop
2-(-10)=laptop
Hence 2+10=laptop eq2
Rest is easy. Just divide eq.1 with eq.2
When you simplify it further, you get the ratio
printer/laptop=3/2
were interested in the Cost price of laptop. So well apply componendo @top
But question already said hat total investment (cost price) of printer +laptop =Rs.20000
Plug in the value
20000/laptop=5/2
Therefore cost price of laptop=(2/5) x 20000=Rs.8000
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Verification
Cost price
Laptop 8,000
Printer 20,000-8000=12,000
Total 20,00
Profit/loss
20% profit on 8k=1600
10% loss on 12k=Minus 1200
1600-1200=+400 Rs. as profit
So overall he received Rs.400 profit on the investment of Rs.20,000

=(400/20000) x 100
=2% profit= matches the condition given in question statement.
Summary
Weighted average method works when weve 3 rates (including one average) and
2 quantities.
First arrange the rates in ascending order. Then draw the table with corresponding
rates and quantities.
Apply visual move and get the answer.
Mock Questions
Case: Journalist Popatlal took some loan from Matkaa-King Mohanlal @36% interest
rate and some loan from Taarak Mehta @10% interest rate. Total money borrowed
Rs.6000. At the end of first year, Popat paid total interest of Rs.912. Answer following
questions
1.
2.
3.
4.
Total amount borrowed

Money borrowed from Mehta
Money borrowed from Mohan
Effective interest rate on total borrowing?
Case: Jethalal bought a chair+table set @Rs.6000. Later he sold Chair @10% loss and
table @10 profit. Overall he gained Rs.100. Answer following questions
5.
6.
7.
8.
Cost price of Chair

Cost price of Table
Selling price of Chair
Selling Price of Table
Case: In Tappus class, the average weight of boys and girls is 77.5kg, 70kg
respectively. Overall average weight of all students is 74 kg.
9. Find Ratio of Boys: girls
10. If total number of students is 30, how many boys study in Tappus class?
11. At present, total number of students is 60. If school administration wants to have
equal number of boys and girls in this class, how many new girls should be
admitted?
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Case: In a state, total number of Desi-liquor dens and Land mafias is 100. They pay
total Rs.1650 crores bribe to home minister every year. Average bribe paid by each
Desi-liquor den and land mafia is 15 crores and 20 crores respectively.
12. Find total number of land mafias in this state
13. Final total bribe paid by these land mafias
14. Owing to media-pressure, the home minister orders police to close down some of
the desi-liquor dens. Now his total bribe income declined by 20%. What is the
new ratio of liquor den: land mafias?
Case: A parking lot has only cars and bikes. Average number of tires per vehicle is 2.9.
There are 55 bikes in this parking plot.
15. Find total number of cars
16. If 5 cars are added and 5 bikes are removed, whatll be the new average number
of tires per vehicle?
Answers
Popat in
debt
1.
2.
3.
4.
Total borrowed Rs. 6000

4800 from Mehta
1200 from Mohanlal.
15.2% interest rate (overall)
Jetha
5.
6.
7.
8.
Cost price Chair =2500

CP Table= 3500.
Selling price of Table (+10% profit)=1.1 x 3500=3850
Selling price of Chair (-10% loss)=0.9 x2500=2250
School
9. Boys/Girls=8/7
10. 16 boys and 14 girls.
11. 4 new girls need to be admitted.
Home
minister
12. Avg. annual bribe is 1650/100=16.5 Now the rates are

15>>16.5>>20. Ratio of liquor-dens:mafia=7:3. Since total
are 100, number of Mafia=3/10 x 100=30.
13. 30 mafia x avg 20 crores=600 crores paid by them.
14. 20% of 1650=330. And 330/15=22 liquor dens were closed
down. So new ratio is (70-22):30=48:30=8/5
Parking
lot
15. Number of cars=45.

16. New avg. no. of tires per vehicle=3
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URL to article: http://mrunal.org/2013/01/aptitude-alligation-interest-rates-profitloss-average-wages-wine-water-concept.html

Posted By On 19/01/2013 @ 14:28 In the category Aptitude
7/28/2014 10:27 AM

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Mrunal [Aptitude] Alligation: Advanced applications in Interest rates, Prof...

[Aptitude] Alligation: Advanced applications in Interest rates, Profit-loss,

Case: Loan taken from two banks

Consider these four questions

Case #1: Loan taken from two banks