IIFT 2018 Question Paper | Quants

The best way to boost your IIFT prep is to practice the actual IIFT Question Papers. 2IIM offers you exactly that, in a student friendly format to take value from this. In the 2018 IIFT, Quants was a mixed bag of questions of varying difficulty, with some routine questions and the others were very demanding. Some beautiful questions that laid emphasis on Learning ideas from basics and being able to comprehend more than remembering gazillion formulae and shortcuts.

Question 1 : A Business Group has 3 Companies X, Y, Z and a Trust P which is engaged in charitable activities. Each group company has to donate 5% of its own funds to the Trust, excluding the loan which the company has taken from other companies of the group. X has given a loan to Y which is equivalent to 10% of the funds of Y. After receiving the loan, Y has funds which are 2 times the funds of Z. If Z gave Rs. 10,000 as donation to the Trust P, how much is the approximate contribution of 'Y' to the Trust P?

1. Rs. 17,000
2. Rs. 18,000
3. Rs. 19,000
4. Rs. 20,000

Explanatory Answer

Z gave a donation of 10,000
5% of Z’s funds = 10,000
=> Z’s funds = 10,000 x 100/5
= 2,00,000
Y’s funds = 2x Z’s funds
= 4,00,000
X has given a loan to Y such that its value is 10% of the total funds of Y
Y₁ + 0.1Y₁ = 4,00,000 = > Y₁ = 4,00,000/1.1
Y’s donation = 5/100 x 4,00,000/1.1
≈ 18,000

The answer is 'Rs. 18,000'

Choice B is the correct answer.