All Courses
Explore Courses UPSC Exam UPSC Test Series Free Notes EduRev Infinity Get the App Login Join for Free
Sign in Open App
CAT Exam  >  CAT Questions  >  A Bank pays simple interest at a certain rate... Start Learning for Free
SaveJoin the Discussion on the App
A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.?
Clear all your CAT doubts with EduRev
Most Upvoted Answer
A Bank pays simple interest at a certain rate per annum on fixed depos...
Say actual rate =R1
reduced rate R2
initial interest for 4 years =(4*p*R1)/100
deducting p/4 as a penalty
net interest
(4*p*R1)/100 -(p/4)
say this is equal to the reduced interest payment which is R2
(4*p*R2)/100

since both will be equal in value

so

(4*p*R2)/100=(4*p*R1)/100 -(p/4)
(R1-R2)4*p/100=p/4
(R1-R2)=100/16=6.25%

Steppenwolf🔥
Attention CAT Students!
To make sure you are not studying endlessly, EduRev has designed CAT study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in CAT.
Explore Courses for CAT exam

Similar CAT Doubts

Analyse the graph/s given below and answer the question that follows.Worst Price, a leading retailer, was running a special sales promotion at its outlet in which, for every 1000 rupees that a customer spent on buying any items at the shop, the customer would get 1 reward point. The marketing department classified the total number of customers into seven different sections – G1, G2, G3,G4, G5, G6, G7 according to their respective number of reward point. The following pie chart gives the percentage wise break up of the number of customers classified into each of these seven sections. In the pie chart, the values given in the brackets alongside each section give the minimum and maximum number of reward point got by any customer classified into that section.To encourage customers to spend more at their outlets the management decided to give cash return to some of the customers from among whose who had at least 18 reward points. While deciding the cash return the management decided to classify the customers with different reward points into different groups-P to U- according to their number of reward points , as given in the table below:The number of customers selected for receiving a cash return were different for different groups However, within each group, the management selected an equal number of customers with each of the different number of reward points classified into that group. For example, in group P, of the total number of customers selected for receiving a cash return, the number of customers with 18 reward points is same as that with 19 reward points, which, in turn, is same as that with 20 reward points.The percentage wise distribution of the total value of the cash returns offered by the management to the customers belonging to the different groups is given in the following graph:Total amount paid ascash returnRs. 300000Q.For which section of customers is the number of customers selected for receiving a cash return the highest, when expressed as a percentage of the total number of customers in that section?

Analyse the graph/s given below and answer the question that follows.Worst Price, a leading retailer, was running a special sales promotion at its outlet in which, for every 1000 rupees that a customer spent on buying any items at the shop, the customer would get 1 reward point. The marketing department classified the total number of customers into seven different sections – G1, G2, G3,G4, G5, G6, G7 according to their respective number of reward point. The following pie chart gives the percentage wise break up of the number of customers classified into each of these seven sections. In the pie chart, the values given in the brackets alongside each section give the minimum and maximum number of reward point got by any customer classified into that section.To encourage customers to spend more at their outlets the management decided to give cash return to some of the customers from among whose who had at least 18 reward points. While deciding the cash return the management decided to classify the customers with different reward points into different groups-P to U- according to their number of reward points , as given in the table below:The number of customers selected for receiving a cash return were different for different groups However, within each group, the management selected an equal number of customers with each of the different number of reward points classified into that group. For example, in group P, of the total number of customers selected for receiving a cash return, the number of customers with 18 reward points is same as that with 19 reward points, which, in turn, is same as that with 20 reward points.The percentage wise distribution of the total value of the cash returns offered by the management to the customers belonging to the different groups is given in the following graph:Total amount paid ascash returnRs. 300000Q. How many customers with 38 reward points were paid a cash return?

Directions: Read the following passage carefully and answer the given question.The system of managing a companys interaction with current and future customers is called Customer Relationship Management or CRM. It makes use of modern technology to organise, automate and synchronise the following four areas; sales, marketing, customer service and technical support.CRM is designed to track and measure marketing campaigns over a variety of networks. These systems can track customer analysis by customer clicks as well as sales. Specifically, these systems are used in call centres, social media, direct mail, data storage files, banks and customer data queries. One unique aspect of this is that it can assist in formulating customer profiles.The goal of these systems is to track customers and their responses, record these responses and store them in databases and then mine this data for information that will improve customer relations. The CRM system codifies the interactions between companies and their customers in order to maximise sales. They make use of analytics and key performance indicators to give users much information on where to focus their marketing and customer service to maximise revenues as well as to decrease idle and unproductive contact with customers. Contact channels such as contact centres make use of CRM software. The software helps to direct customers to the right agent or information channel (such as informational recordings or automated bill payment or appointment scheduling). One key feature of CRM software is that it can be used to identify and reward loyal customers over a period of time, which can enhance customer relationships.One common function that CRM software is used for is to synchronise suitable appointment dates, times and methods for customer contact. Once the appointments are saved in the systems calendar, the information regarding the appointment can be easily retrieved. It can pull up information on specific information and then send an automated message as a reminder to the involved persons.Because of modern technology, the environment often requires businesses to interact with each other via the web. Because of this, The Sweeny Group defines CRM as being all the tools, technologies and procedures that are required to manage, improve or facilitate sales, customer/technical support and all related interactions with customers, prospective customers and business partners throughout the entire venture. Based on this definition, it is assumed that CRM is involved in every business to business transaction.The general concept is that CRM systems were created for customer-centric businesses, but they can also apply to business to business environments. In this sense, they are used to streamline and improve customer management conditions. Both systems (business to customer, business to business) are not created equal and are different in application. This is because relationships between business to business take longer to come to fruition than the business to customer. With this in mind, all softwares used for CRM must be personalised and delivered at individual levels.Q.Which of the following can be said about the current status of the usage of CRM systems?

Directions: Read the following passage carefully and answer the given question.The system of managing a companys interaction with current and future customers is called Customer Relationship Management or CRM. It makes use of modern technology to organise, automate and synchronise the following four areas; sales, marketing, customer service and technical support.CRM is designed to track and measure marketing campaigns over a variety of networks. These systems can track customer analysis by customer clicks as well as sales. Specifically, these systems are used in call centres, social media, direct mail, data storage files, banks and customer data queries. One unique aspect of this is that it can assist in formulating customer profiles.The goal of these systems is to track customers and their responses, record these responses and store them in databases and then mine this data for information that will improve customer relations. The CRM system codifies the interactions between companies and their customers in order to maximise sales. They make use of analytics and key performance indicators to give users much information on where to focus their marketing and customer service to maximise revenues as well as to decrease idle and unproductive contact with customers. Contact channels such as contact centres make use of CRM software. The software helps to direct customers to the right agent or information channel (such as informational recordings or automated bill payment or appointment scheduling). One key feature of CRM software is that it can be used to identify and reward loyal customers over a period of time, which can enhance customer relationships.One common function that CRM software is used for is to synchronise suitable appointment dates, times and methods for customer contact. Once the appointments are saved in the systems calendar, the information regarding the appointment can be easily retrieved. It can pull up information on specific information and then send an automated message as a reminder to the involved persons.Because of modern technology, the environment often requires businesses to interact with each other via the web. Because of this, The Sweeny Group defines CRM as being all the tools, technologies and procedures that are required to manage, improve or facilitate sales, customer/technical support and all related interactions with customers, prospective customers and business partners throughout the entire venture. Based on this definition, it is assumed that CRM is involved in every business to business transaction.The general concept is that CRM systems were created for customer-centric businesses, but they can also apply to business to business environments. In this sense, they are used to streamline and improve customer management conditions. Both systems (business to customer, business to business) are not created equal and are different in application. This is because relationships between business to business take longer to come to fruition than the business to customer. With this in mind, all softwares used for CRM must be personalised and delivered at individual levels.Q.Why does the author recommend that CRM software be personalised and delivered at individual levels?

Top Courses for CATView all

Top Courses for CAT

A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.?
Question Description
A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? for CAT 2024 is part of CAT preparation. The Question and answers have been prepared according to the CAT exam syllabus. Information about A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? covers all topics & solutions for CAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.?.
Solutions for A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? in English & in Hindi are available as part of our courses for CAT. Download more important topics, notes, lectures and mock test series for CAT Exam by signing up for free.
Here you can find the meaning of A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? defined & explained in the simplest way possible. Besides giving the explanation of A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.?, a detailed solution for A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? has been provided alongside types of A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? theory, EduRev gives you an ample number of questions to practice A Bank pays simple interest at a certain rate per annum on fixed deposits parked with them for at least 6 years. a customer closes his fixed deposit prematurely after just 4 years. due to this the bank reduces the total amount paid to him by an amount equal to a quarter of his principal amount to reflect the change in rate of interest for the shorter period of his deposit. find the difference between the rate of interest for the full term of 6 years and that obtained by the customer.? tests, examples and also practice CAT tests.
Explore Courses for CAT exam

Top Courses for CAT

Explore Courses

Suggested Free Tests

Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
10M+ students study on EduRev
Get App
© EduRev
Education Revolution
Follow Us
Signup to see your scores go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup