Question 13

An E-rickshaw owner makes 24 trips a month with 4 passengers per trip. If his interest cost for purchase of E-rickshaw is ₹ 120/month, he earns 15 percent profit a month (Profit is the difference between revenue and cost). What will be the approximate percentage profit for the same month if the owner undertakes 20 trips a month with 5 passengers and his interest cost is reduced by 10 percent for the month ?

Assume:
(a) Total cost to be proportional to the interest cost.
(b) Revenue per passenger is the same in both cases.

Solution

Share

Consider the revenue per passenger = P

=> Total revenue = 24*4P = 96P

Since the total cost is proportional to interest, it can be assumed as 120*K

Total cost*(1+Profit/100)=Revenue 

=> 120K(1+15/100) = 96P ..........(1)

New Revenue = 20*5P = 120*(0.9)K*(1+Profit/100) ..........(2)

Dividing (2) by (1),

25/24  = (0.9/1.15)(1+Profit/100)

Profit/100 = (25*23)/(18*24) - 1 = 1.33-1

=> Profit = 33%, Option A is the answer.

Get AI Help

View More Questions From Interest

Create a FREE account and get:

  • All Quant Formulas and shortcuts PDF
  • 170+ previous papers with solutions PDF
  • Top 5000+ MBA exam Solved Questions for Free

IIFT Quant Questions | IIFT Quantitative Ability

IIFT Data Sufficiency QuestionsIIFT Venn Diagrams QuestionsIIFT Probability, Combinatorics QuestionsIIFT Simple Interest Compound Interest QuestionsIIFT Time, Speed and Distance QuestionsIIFT Averages Mixtures Alligations QuestionsIIFT Number Series QuestionsIIFT Number Systems QuestionsIIFT Linear Equations QuestionsIIFT Time Speed Distance QuestionsIIFT Progressions and Series QuestionsIIFT Remainders QuestionsIIFT Percentages QuestionsIIFT Profit and Loss QuestionsIIFT Logarithms QuestionsIIFT Inequalities QuestionsIIFT Functions, Graphs and Statistics QuestionsIIFT Algebra QuestionsIIFT Miscellaneous QuestionsIIFT Mensuration QuestionsIIFT Averages, Ratio and Proportion QuestionsIIFT Coordinate Geometry QuestionsIIFT Arithmetic QuestionsIIFT Quadratic Equations QuestionsIIFT Geometry QuestionsIIFT Averages QuestionsIIFT Time And Work QuestionsIIFT Logarithms, Surds and Indices QuestionsIIFT Profit And Loss Questions

IIFT DILR Questions | LRDI Questions For IIFT

IIFT Truth Lie Concept QuestionsIIFT Arrangement QuestionsIIFT 2D & 3D LR QuestionsIIFT Data Interpretation Basics QuestionsIIFT DI Miscellaneous QuestionsIIFT Data change over a period QuestionsIIFT Games and Tournaments QuestionsIIFT Routes And Networks QuestionsIIFT Charts QuestionsIIFT Data Interpretation QuestionsIIFT Puzzles QuestionsIIFT Miscellaneous LR QuestionsIIFT Selection With Condition QuestionsIIFT Table based DI Sets QuestionsIIFT DI with connected data sets QuestionsIIFT Special Charts QuestionsIIFT Coins and Weights QuestionsIIFT Venn Diagrams QuestionsIIFT Quant Based DI QuestionsIIFT Scheduling QuestionsIIFT Quant Based LR QuestionsIIFT Maxima-Minima Questions

IIFT Verbal Ability Questions | VARC Questions For IIFT

IIFT Reading Comprehension QuestionsIIFT Odd One Out QuestionsIIFT Para Summary QuestionsIIFT Verbal Ability QuestionsIIFT Critical Reasoning QuestionsIIFT Para Jumbles QuestionsIIFT Vocabulary QuestionsIIFT Grammar and Sentence Correction Questions

Free IIFT Quant Questions

IIFT AlgebraIIFT Averages Mixtures AlligationsIIFT LogarithmsIIFT Functions, Graphs and StatisticsIIFT InequalitiesIIFT Number SystemsIIFT Time Speed DistanceIIFT Time And WorkIIFT ArithmeticIIFT Profit and LossIIFT RemaindersIIFT Coordinate GeometryIIFT Linear EquationsIIFT Averages, Ratio and ProportionIIFT Venn DiagramsIIFT PercentagesIIFT Simple Interest Compound InterestIIFT AveragesIIFT Time, Speed and DistanceIIFT MensurationIIFT Data SufficiencyIIFT Logarithms, Surds and IndicesIIFT Number SeriesIIFT GeometryIIFT Profit And LossIIFT Progressions and SeriesIIFT MiscellaneousIIFT Probability, CombinatoricsIIFT Quadratic Equations

Book Free CAT Mentorship

Get personalized CAT strategy from a 99%iler

500+ students mentored
CAT mentor

Join CAT 2026 course by 5-Time CAT 100%iler

Start your IIM journey with the right preparation and crack CAT 2026.

Enroll Now
Ask AI