Directions (1-5): The bar graph given below shows the percentage distribution of the total expenditures of a company under various expense heads during 2003.

Percentage Distribution of Total Expenditure of a Company

1. The total amount of expenditures of the company is how many times of expenditure on research and development?

A. 27 B. 20 C. 18 D. 8

2. If the expenditure on advertisement is 2.10 crores then the difference between the expenditure on transport and taxes is?

A. Rs. 1.25 crores B. Rs. 95 lakhs C. Rs. 65 lakhs D. Rs. 35 lakhs

3. What is the ratio of the total expenditure on infrastructure and transport to the total expenditure on taxes and interest on loans?

A. 5:4 B. 8:7 C. 9:7 D. 13:11

4. If the interest on loans amounted to Rs. 2.45 crores then the total amount of expenditure on advertisement, taxes and research and development is?

A. Rs. 7 crores B. Rs. 5.4 crores C. Rs. 4.2 crores D. Rs. 3 crores

5. The expenditure on the interest on loans is by what percent more than the expenditure on transport?

A. 5% B. 10% C. 20% D. 40%

Answers and Explanations
1. Answer - Option B
Explanation -
Let the total expenditures be Rs. x.
Then, the expenditure on Research and Development (R & D)
= Rs. (5% of x)
= Rs.[latex](\frac {5}{100} \times x)[/latex]
= Rs. [latex](\frac {x}{20})[/latex]
i.e, Ratio of the total expenditure to the expenditure on R & D
= [latex](\frac {x}{\frac {x}{20}})[/latex]
= [latex](\frac {20}{1})[/latex]
Then, the total expenditure is 20 times the expenditure of Research and Development.
2. Answer - Option D
Explanation -
Let the total expenditure be Rs. x crores.
Then, 15% of x = 2.10 [latex] \Rightarrow x = (\frac { 2.10 x 100}{15}) = 14.[/latex]
Therefore Total expenditure = Rs. 14 crores
and so, the difference between the expenditures on transport and taxes
= Rs. [(12.5 - 10)% of 14] crores
= Rs. [2.5% of 14] crores
= Rs. 0.35 crores
= Rs. 35 lakhs
3. Answer - Option D
Explanation -
Let the total amount of expenditures be Rs. x.
Then, the total expenditure on infrastruture and transport
= Rs. [(20 + 12.5)% of x]
= Rs. [32.5% of x]
= Rs. [latex](\frac {32.5x}{100})[/latex]
And total expenditure on taxes and interest on loans
= Rs. [(10 + 17.5)% of x]
= Rs. [27.5% of x]
= Rs [latex](\frac {27.5x}{100})[/latex]
i.e, Required ratio = [latex](\frac {\frac {32.5x}{100}}{\frac {27.5x}{100}}) = \frac {13}{11}[/latex]
4. Answer - Option C
Explanation -
Let the total expenditure be Rs. x crores.
Then, 17.5% of x = 2.45 [latex]\Rightarrow[/latex] x = 14.
Therefore Total expenditure = Rs. 14 crores.
And so, the total expenditure on advertisement, taxes and Research and Development
= Rs. [(15 + 10 + 5)% of 14] crores
= Rs. [30% of 14] crores
= Rs. 4.2 crores.
5. Answer - Option D
Explanation -
Let the total amount of expenditures be Rs. x.
Then, the expenditure on interest on loans = Rs. (17.5% of x) = Rs. [latex](\frac {17.5}{100} x )[/latex]
And the expenditure on transport = Rs. (12.5% of x) = Rs. [latex](\frac {12.5}{100} x )[/latex]
Difference between the two expenditures
= Rs. [latex][\frac {17.5x}{100} - \frac {12.5x}{100}][/latex]
= Rs [latex](\frac {5x}{100})[/latex]
And so, the required % = [latex](\frac {\frac {5x}{100}}{\frac {12.5x}{100}} \times 100)[/latex]% = 40%

Directions (1 to 5): The following pie chart shows the amount of subscriptions generated for India Bonds from different categories of investors.

Subscriptions Generated for India Bonds

1. In the corporate sector, approximately how many degrees should be there in the central angle ?

A. 120 B. 121 C. 122 D. 123

2. If the investment by NRI's are Rs 4,000 crore, then the investments by corporate houses and FII's together is:

A. 24,000 crore B. 24,363 crore C. 25,423 crore D. 25,643 crore

3. What percentage of the total investment is coming from FII's and NRI's ?

A. 33% B. 11% C. 44% D. 22%

4. If the total investment other than by FII and corporate houses is Rs 335,000 crore, then the investment by NRI's and Offshore funds will be (approximately) ?

A. 274,100 B. 285,600 C. 293,000 D. Cannot be determined

5. If the total investment flows from FII's were to be doubled in the next year and the investment flows from all other sources had remained constant at their existing levels for this year, then what would be the proportion of FII investment in the total investment into India Bonds next year (in US $ millions) ?

A. 40% B. 50% C. 60% D. 70%

Answers and Explanations
1. Answer - Option C
Explanation -
34 x 3.6 = 122.4 (since 1% = 3.6 degrees)
2. Answer - Option B
Explanation -
[latex](\frac {67}{11}) \times 4000 = 24 363.6364[/latex]
3. Answer - Option C
Explanation -
(33 + 11) = 44
4. Answer - Option A
Explanation -
Investment other than NRI and corporate houses is 33% = 335000. Also, investment by offshore funds and NRI's is equal to 27%.
Hence, [latex]\frac {27 \times 335,000}{33} [/latex] = 274 090.909
5. Answer - Option B
Explanation -
FII's currently account for 33 out of 100.
If their value is doubled and all other investments are kept constant then their new value would be 66 out of 133 = approximately equal to 50%

Directions (1 to 5): Two different finance companies declare fixed annual rate of interest on the amounts invested with them by investors. The rate of interest offered by these companies may differ from year to year depending on the variation in the economy of the country and the banks rate of interest. The annual rate of interest offered by the two Companies P and Q over the years are shown by the line graph provided below.

Annual Rate of Interest Offered by Two Finance Companies Over the Years.

1. A sum of Rs. 4.75 lakhs was invested in Company Q in 1999 for one year. How much more interest would have been earned if the sum was invested in Company P?

A. Rs. 19,000 B. Rs. 14,250 C. Rs. 11,750 D. Rs. 9500

2. If two different amounts in the ratio 8:9 are invested in Companies P and Q respectively in 2002, then the amounts received after one year as interests from Companies P and Q are respectively in the ratio?

A. 2:3 B. 3 : 4 C. 6 : 7 D. 4 : 3

3. In 2000, a part of Rs. 30 lakhs was invested in Company P and the rest was invested in Company Q for one year. The total interest received was Rs. 2.43 lakhs. What was the amount invested in Company P?

A. Rs. 9 lakhs B. Rs. 11 lakhs C. Rs. 12 lakhs D. Rs. 18 lakhs

4. An investor invested a sum of Rs. 12 lakhs in Company P in 1998. The total amount received after one year was re-invested in the same Company for one more year. The total appreciation received by the investor on his investment was?

A. Rs. 2,96,200 B. Rs. 2,42,200 C. Rs. 2,25,600 D. Rs. 2,16,000

5. An investor invested Rs. 5 lakhs in Company Q in 1996. After one year, the entire amount along with the interest was transferred as investment to Company P in 1997 for one year. What amount will be received from Company P, by the investor?

A. Rs. 5,94,550 B. Rs. 5,80,425 C. Rs. 5,77,800 D. Rs. 5,77,500

Answers and Explanations
1. Answer - Option D
Explanation -
Difference = Rs. [(10% of 4.75) - (8% of 4.75)] lakhs
= Rs. (2% of 4.75) lakhs
= Rs. 0.095 lakhs
= Rs. 9500.
2. Answer - Option D
Explanation -
Let the amounts invested in 2002 in Companies P and Q be Rs. 8x and Rs. 9x respectively.
Then, interest received after one year from Company P = Rs. (6% of 8x)
= Rs.[latex]\frac {48x}{100}[/latex]
And interest received after one year from Company Q = Rs. (4% of 9x)
= Rs.[latex]\frac {36x}{100}[/latex]
i.e, Required ratio = [latex]\frac {\frac {48x}{100}}{\frac {36x}{100}} = \frac {4}{3}[/latex]
3. Answer - Option D
Explanation -
Let Rs. x lakhs be invested in Company P in 2000, the amount invested in Company Q in 2000 = Rs. (30 - x) lakhs.
Total interest received from the two Companies after 1 year
= Rs. [(7.5% of x) + {9% of (30 - x)}] lakhs
= Rs. [latex] [2.7 - (\frac {1.5x}{100})][/latex] lakhs
= Rs. [latex] [2.7 - (\frac {1.5x}{100})] = 2.43 \Rightarrow x = 18[/latex]
4. Answer - Option C
Explanation -
Amount received from Company P after one year (i.e., in 199) on investing Rs. 12 lakhs in it
= Rs. [12 + (8% of 12)] lakhs
= Rs. 12.96 lakhs.
Amount received from Company P after one year on investing Rs. 12.96 lakhs in the year 1999
= Rs. [12.96 + (10% of 12.96)] lakhs
= Rs. 14.256.
Appreciation received on investment during the period of two years
= Rs. (14.256 - 12) lakhs
= Rs. 2.256 lakhs
= Rs. 2,25,600.
5. Answer - Option B
Explanation -
Amount received from Company Q after one year on investment of Rs. 5 lakhs in the year 1996
= Rs. [5 + (6.5% of 5)] lakhs
= Rs. 5.325 lakhs.
Amount received from Company P after one year on investment of Rs. 5.325 lakhs in the year 1997
= Rs. [5.325 + (9% of 5.325)] lakhs
= Rs. 5.80425 lakhs
= Rs. 5,80,425.