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Data Intenpretation Based on Caselets Problem Set

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Data Intenpretation Based on Caselets Problem Set

Key Skills Involved I. Firstly, identify the variables in the data, the number of instances of the variables provided and the respective inter relationships amongst the variables. Once the above information is figured out, check if a tabular format is required to solve the given case. II. III. If not needed, start with the questions directly. If needed, start to fill the table with direct data given. Now, with the basic framework, identify the solution to the question being asked. Only focus to solve only to get the answer of the question asked NOTE: Transfer any information derived in the process of solving one question onto the table so that it is available for all subsequent questions

Caseleti: Directions: Mr. Deepak Goyal wants to buy a motorbike which is price at Rs.45,500 The bike is also available at Rs.25,000 down payment and monthly instalments of Rs.1000 per month for 2 years or Rs 18,000 down payment and monthly instalment of Rs 1000 per month for 3 years. Mr. Deepak has with him only Rs 12,000. He wants to borrow the balance money of the down payment from a private lender whose terms are: If Rs.6,000 is borrowed for 12 months, the rate of interest is 20%. The interest will be calculated on the whole amount for the year, even though the repayment has to be done in 12 equal monthly instalments starting from the first month itself. Thus he will have to repay an amount of Rs.600 per month for 12 months to repay Rs.6000 (principle) Rs. 1200 (interest @ 20 percent) If Rs.10,000 is borrowed for one year, the rate of interest is 30 percent and is calculated in exactly the same manner as above.

Answer the following: Q1. If Mr. Deepak is ready to pay either of the down payment then which of the instalment schemes is the better option of the two? (Assume that Mr. Deepak will pay the instalments out of his own earnings and he keeps his savings with himself and earns no interest on the same.) Also assume that instead of borrowing the remaining money for the down payment, he saves the balance before purchase. (a)Rs. 1000 for 2 years (c)Either of the two (b)Rs. 1000 for 3 years (d)Data Inadequate Workspace:

Q1. If Mr. Deepak is ready to pay either of the down payment then which of the instalment schemes is the better option of the two? (Assume that Mr. Deepak will pay the instalments out of his own earnings and he keeps his savings with himself and earns no interest on the same.) Also assume that instead of borrowing the remaining money for the down payment, he saves the balance before purchase. (a)Rs. 1000 for 2 years (c)Either of the two (b)Rs. 1000 for 3 years (d)Data Inadequate Workspace: Scheme 1: Downpayment= Rs. 25,000 Instalment- Rs. 1000 for 2 years - 24X 1000-Rs. 24000 Total cost of the bike = Rs. (25000 + 24000)= Rs.49000 Scheme 2: Down payment - Rs. 18,000 Instalment: Rs. 1000 for 3 years = 36 X 1000 = Rs. 36000 Total cost of the bike Rs. (18000 36000)- Rs. 54000 Scheme 1 is a better option since overall costing is less Therefore, Answer is Option (a).

Answer the following: Q2.What is the percentage difference in the total amount paid to the bike dealer, between the two instalment schemes (with respect to the total payment of the scheme with Rs. 25000 down payment? (a) 10.2% (c) 11.4% (b) 13.5% (d) None of these Workspace:

Q2. What is the percentage difference in the total amount paid to the bike dealer, between the two instalment schemes (with respect to the total payment of the scheme with Rs. 25000 down payment? (a) 10.2% (c) 1 1.4% (b) 13.5% (d) None of these Workspace: Scheme 1: Down payment= Rs. 25,000 Instalment-Rs. 1000 for 2 years-24 X 1000= Rs. 24000 Total cost of the bike Rs. (25000 24000)- Rs. 49000 Scheme 2: Down payment- Rs. 18,000 Instalment-Rs. 1000 for 3 years= 36 X 1000 = Rs. 36000 Total cost of the bike Rs. (18000 36000)- Rs. 54000 Percentage difference (54000-49000)/49000} X 1 00 10.2% Therefore, Answer is Option (a).

Answer the following: Q3. If Deepak can spare only a total of Rs. 2000 to be paid to the bike dealer and the money lender from his monthly earnings starting from the first month onwards, which scheme should he choose? (a)Rs. 1000 for 2 years (c)Either of the two (b)Rs. 1000 for 3 years (d)Data Inadequate Workspace: