Mrunal (Aptitude) Alligation - Advanced Applications in Interest Rates, Profit-Loss, Average Wages (Wine-Water Concept) Mrunal

7/26/2014 Mrunal [Aptitude] Alligation: Advanced applications in Interest rates, Profit-loss, Average Wages (Wine-Water Concept) Mrunal
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[Aptitude] Alligation: Advanced applications in Interest rates, Profit-loss, Average Wages (Wine-Water
Concept)
1. Case: Loan taken from two banks
2. Case: Profit on Single commodity
3. Case: No. of Employees based on Avg Salary
4. Case: Profit on Two commodities
5. Summary
6. 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
(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 Interest rate
SBI 2500 8% of 2500=200
ICICI 10k-2500=7500 10% of 7500=750
Total 8500 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 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 10% x 400=Rs.40
Remaining cards sell @26 (2/3) 26 (2/3)% x 600=Rs.160
Total profit 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
When you simplify this further, you get m=22
Therefore, Total number of employees is 22.
Verification
Number Avg. salary Total cost to Sodhi
Cooks 7 10000 7 x 10k=70k
Others 15 7800 1,17,000
Total 15+7=22 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
Verification
Cost price Profit/loss
Laptop 8,000 20% profit on 8k=1600
Printer 20,000-8000=12,000 10% loss on 12k=Minus 1200
Total 20,00 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. Total amount borrowed
2. Money borrowed from Mehta
3. Money borrowed from Mohan
4. 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. Cost price of Chair
6. Cost price of Table
7. Selling price of Chair
8. 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?
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. Total borrowed Rs. 6000
2. 4800 from Mehta
3. 1200 from Mohanlal.
4. 15.2% interest rate (overall)
Jetha
5. Cost price Chair =2500
6. CP Table= 3500.
7. Selling price of Table (+10% profit)=1.1 x 3500=3850
8. 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
For the Archive of all [Aptitude] Articles, visit Mrunal.org/aptitude
URL to article: http://mrunal.org/2013/01/aptitude-alligation-interest-rates-profit-loss-average-wages-wine-water-
concept.html
Posted By On 19/01/2013 @ 14:28 In the category Aptitude

Mrunal (Aptitude) Alligation - Advanced Applications in Interest Rates, Profit-Loss, Average Wages (Wine-Water Concept) Mrunal

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