■ CUET UG GAT

Quantitative Aptitude
Study Notes — Module 2

Compound Interest • Ratio • Direct & Inverse Proportion

■ Based on RS Aggarwal — Quantitative Aptitude

■ CUET UG Level — Beginner Friendly

■ Concept → Formulas → Examples → Tricks → Mistakes

■ Full Revision Box at the End

■ For personal study use only

 ■ TOPIC 1 : COMPOUND INTEREST
■ Basic Idea

• In Simple Interest, interest is earned only on principal. In Compound Interest (CI), interest is earned on
principal + previous interest.
• Think of it as: interest on interest — money grows faster.
• The period after which interest is added is called compounding period (yearly, half-yearly, quarterly).
• CI is always greater than or equal to SI for the same P, R, T.

■ Core Formulas

Amount (CI) A = P × (1 + R/100)T

CI CI = A − P

Half-yearly A = P × (1 + R/200)2T

Quarterly A = P × (1 + R/400)4T

CI for 2 years CI = P × [2R/100 + (R/100)2]

CI − SI (2 yrs) CI − SI = P × (R/100)2

CI − SI (3 yrs) CI − SI = P(R/100)2 × (R/100 + 3)

Rate from doubling If doubles in n yrs → approx. R = 72/n (Rule of 72)

Variables: P = Principal | R = Rate % p.a. | T = Time (years) | A = Amount

■ Solved Examples

Q1. P = ■1000, R = 10% p.a., T = 2 yrs (compounded annually). Find CI.

→ A = 1000 × (1.1)2 = 1000 × 1.21 = ■1210
→ CI = 1210 − 1000 = ■210

Q2. Find the difference CI − SI for P = ■5000, R = 4%, T = 2 yrs.

→ CI − SI = P × (R/100)2 = 5000 × (0.04)2 = 5000 × 0.0016 = ■8

Q3. P = ■8000, R = 10% compounded half-yearly, T = 1 yr. Find A.

→ A = 8000 × (1 + 10/200)2 = 8000 × (1.05)2 = 8000 × 1.1025 = ■8820

■ Easy Tricks

■ 2-year shortcut: If R = 10%, CI for 2 yrs = 21% of P (not 20%). The extra 1% = interest on interest.
■ Multiplier trick: 10% for 3 yrs → multiply P by 1.1 × 1.1 × 1.1 = 1.331. So A = 1.331P.
■ CI vs SI (2 yrs): CI − SI = P(R/100)2. Memorise this — direct formula answer.
■ Rule of 72: Money doubles in approx. 72 ÷ R years. At 8% → doubles in 9 yrs.

■■ Common Mistakes

■ Using SI formula (PRT/100) for CI questions — always different answers.

■ For half-yearly: forgetting to halve R AND double T.
■ Reporting Amount (A) as CI — remember CI = A − P.
 ■ TOPIC 2 : RATIO
■ Basic Idea

• A ratio compares two quantities of the same kind.

• Written as a : b (read as 'a is to b'). Equivalent to the fraction a/b.
• Both values must be in the same unit before writing a ratio.
• A ratio has no units — it is a pure number.
• Proportion: When two ratios are equal → a:b = c:d (written as a:b :: c:d).

■ Core Formulas

Ratio a : b = a/b

Proportion a : b :: c : d → a×d = b×c (cross multiply)

4th Proportional x = (b × c) / a

Mean Proportional x = √(a × b)

3rd Proportional x = b2 / a

Dividing P in a:b Part1 = P × a/(a+b), Part2 = P × b/(a+b)

Compound Ratio a:b and c:d → ac : bd

Duplicate Ratio a:b → a2:b2

Sub-duplicate Ratio a:b → √a : √b

■ Solved Examples

Q1. Divide ■720 in ratio 3 : 5.

→ Total parts = 8. Part1 = 720 × 3/8 = ■270. Part2 = 720 × 5/8 = ■450

Q2. If a : b = 2 : 3 and b : c = 4 : 5, find a : b : c.

→ Make b common. b = LCM(3,4) = 12. a:b = 8:12, b:c = 12:15
→ a : b : c = 8 : 12 : 15

Q3. Find mean proportional of 4 and 16.

→ x = √(4 × 16) = √64 = 8

■ Easy Tricks

■ Simplify first: Always reduce ratio to lowest terms before solving (divide by HCF).
■ Cross multiply: For a:b :: c:d → always use a×d = b×c to find the unknown.
■ Combining ratios: Make the common term equal using LCM — standard exam trick.
■ Division shortcut: Total ÷ sum-of-parts × each part. Faster than fractions.

■■ Common Mistakes

■ Writing ratio of quantities in different units (e.g. metres vs centimetres) — convert first.
■ Confusing ratio a:b with fraction a/(a+b) when dividing a total.
■ In a:b :: c:d, mixing up which terms to cross-multiply.
 ■ TOPIC 3 : DIRECT & INVERSE PROPORTION
■ Basic Idea

■ DIRECT PROPORTION ■ INVERSE PROPORTION

Both quantities increase or decrease

TOGETHER. One increases, the other DECREASES.

More workers → more work done. More workers → less time needed.

Symbol: x ∝ y Symbol: x ∝ 1/y

x/y = constant (k) x × y = constant (k)

■ Core Formulas

Direct Proportion x1/y1 = x2/y2

Inverse Proportion x1 × y1 = x2 × y2

Find missing value Cross multiply and solve for unknown

Work-Men-Days M1 × D1 = M2 × D2 (inverse)

Work-Men-Days-Hrs M1 × D1 × H1 = M2 × D2 × H2

■ Solved Examples

Q1 [Direct]. If 5 pens cost ■35, how much do 8 pens cost?

→ 5/35 = 8/x → x = (8 × 35)/5 = ■56

Q2 [Inverse]. 6 workers finish a job in 12 days. How many days for 9 workers?
→ 6 × 12 = 9 × d → d = 72/9 = 8 days

Q3 [MDH]. 8 men working 6 hrs/day finish in 10 days. How many days if 12 men work 8 hrs/day?
→ 8 × 6 × 10 = 12 × 8 × d → d = 480/96 = 5 days

■ Easy Tricks

■ Quick test: If both go UP together → Direct. If one goes UP and other DOWN → Inverse.
■ Unitary method: Find value for 1 unit first, then multiply. Works for all direct proportion.
■ MDH formula: Men × Days × Hours = constant. Write it as a fraction and cancel.
■ More workers = less days (inverse). More speed = less time (inverse). Always check logic!

■■ Common Mistakes

■ Applying direct proportion where inverse is needed (or vice versa) — always check the logic.
■ In MDH: forgetting to include hours when the question changes working hours per day.
■ Cross-multiplying incorrectly — write x1/y1 = x2/y2 clearly before solving.
 ■ FINAL REVISION BOX — MODULE 2

■ All Formulas — Quick Reference

TOPIC FORMULA

CI Amount A = P(1 + R/100)<super>T</super>

CI CI = A − P

CI half-yearly A = P(1 + R/200)<super>2T</super>

CI − SI (2 yrs) = P(R/100)<super>2</super>

Rule of 72 Doubling time ≈ 72 / R years

Ratio division Share = Total × part / sum-of-parts

Proportion a:b :: c:d → ad = bc

Mean proportional = √(a × b)

Direct proportion x1/y1 = x2/y2

Inverse proportion x1 × y1 = x2 × y2

Men-Days-Hours M1 × D1 × H1 = M2 × D2 × H2

■ 5 Key Tricks to Remember

1. CI for 2 yrs at 10% = 21% of P (not 20%) — the 1% extra is interest on interest.

2. For half-yearly CI: halve the rate AND double the time.

3. Simplify ratios to lowest terms (divide by HCF) before any calculation.

4. Direct ∝: both go same direction. Inverse ∝: opposite directions. Check logic first!

5. MDH formula: M × D × H = constant. Works for all worker-time problems.

■■ 5 Common Mistakes to Avoid

1. ■ Using SI formula (PRT/100) for CI questions.

2. ■ Reporting Amount as CI — always subtract P to get CI.

3. ■ Writing ratio of different units without converting first.

4. ■ Confusing direct and inverse proportion — leads to wrong setup.

5. ■ Ignoring hours/day in MDH problems when hours change.

■ Revise this box the night before CUET — covers all key formulas & traps for Module 2!

■ CUET UG GAT Quant Notes — Module 2 | RS Aggarwal Based | Beginner Level