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Arithmetic : Level 1 Test -2

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Question 1
The service tax on Britannia Biscuit Company is reduced by 5% and consequently its consumption increased by 10%. What will be the effect on revenue?
A
Increased by 2%
B
Increased by 1%
C
Decreased by 2%
D
None
Question 1 Explanation: 
Let the base value be p
Revenue = (Consumption x Tax)
The Service tax is reduced by 5%
So the now base value will be 95% of p
In addition, the consumption is increased by 10%
So the consumption will be 110% of p
So the revenue will be 110/100 x 95/100 x p =104.5p
Therefore, the revenue is increased by 4.5%
Thus, the answer is none of these.
Question 2
The difference between the 40% of the number and the 20% of the same number is 39. Then find 60% of the same number?
A
117
B
118
C
119
D
120
Question 2 Explanation: 
Let the number be A
40% of A – 20% of A = 39
Therefore A = 195
So the 60% will be 117.
Question 3
One third of the 45% of the number is equal to the one seventh of 35% of another number. What is the respective ratio of the first number to the second number?
A
2:3
B
3:2
C
1:3
D
none
Question 3 Explanation: 
Let the numbers are A and P
So the 1/3 x 45/100 x A = 1/7 x 35/100 x P
15/100 A = 1/20 P
3/20 A =1/20 P
A:P = 1:3
Therefore, option C is the right answer.
Question 4
The amount gained by Richa on selling an article for Rs. 556 is equal to the loss attain by her when she sell it in Rs. 520. What is the cost price of the article?
A
548
B
530
C
460
D
538
Question 4 Explanation: 
Profit = S.P. – C.P.
Loss is C.P. – S.P.
Since the loss is equal to the profit gained
So the equation becomes
556 – C.P. = C.P. – 520
So 2C.P. = 1076
C.P. = Rs. 538
Question 5
Jelly sold his mobile at 15% loss. If he would have bought it for 35% less and sold it for Rs. 30 more he would gain 40% .The cost price of the mobile is:
A
A Rs. 450
B
Rs. 500
C
Rs. 600
D
Rs. 750
Question 5 Explanation: 
Let the cost price be =Rs. C
Therefore the selling price will be = Rs. 85C/100
Now the New cost price = Rs. 65C/100
If he would have bought it for 35% less and sold it for Rs. 30 more he would gain 40% more
So (85C/100 + 30) – 65C/100 ={40/100}{(65C/100)}
By solving for C, we obtain its value as Rs 500.
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