Daily Dose of DI LR for CAT Exam - 13 - Azucation (3E Learning)

Master Data Interpretation and Logical Reasoning with Daily Practice

Welcome to Daily Dose of DI LR for CAT Exam! Preparing for the CAT exam can be a daunting task, especially when it comes to the Data Interpretation and Logical Reasoning (DI LR) section. This blog is dedicated to helping you master these critical components with daily practice questions, tips, and strategies. Whether you’re a seasoned test-taker or just starting your preparation, you’ll find valuable insights and exercises here to boost your confidence and improve your scores.

Investment Growth & Inflation – Timed Quiz

Time left: 15:00

DIRECTIONS for questions 1 to 3: Answer the questions on the basis of the information given below.

In the following table, for each specified 'Number of years', the value mentioned against a particular 'Rate' is the total amount that can be obtained after the specified 'Number of years', if Rs.100 is invested today, at that particular rate of interest, compounded annually. In other words, the values in the table also represent the prices to be paid, after the specified 'Number of years', for an item costing Rs.100 now, considering the annual rate of inflation as 5%, 8% or 10%.

Rate	5	10	15	20
5%	127.6	162.9	207.9	265.3
8%	146.9	215.9	317.2	466.1
10%	161.1	259.4	417.7	672.7

Q1. If a person invests Rs.5 lakh in a bank at 5% rate of interest, interest being compound annually, what is the approximate total interest that the person will obtain after 20 years?

Rs.7.4 lakh Rs.8.3 lakh Rs.9.4 lakh Rs.13.2 lakh

Q2. If for the next 20 years, inflation is expected to be constant at 5% per annum, while the equity markets are expected to deliver a uniform return of 8% (both compounded annually), then what would be the minimum number of years it would take to get an actual growth of 50% on an amount of Rs.10 lakh invested in the equity markets?

12 13 15 16

Q3. To obtain an amount of Rs.100 lakh at the end of 15 years, what should be the approximate amount invested now, at an interest rate of 10% per annum, compounded annually?

Rs.24 lakh Rs.28 lakh Rs.33 lakh Rs.44 lakh

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