Probability is used to indicate a possibility of an event to occur. It is often used synonymously with
chance.
In any experiment if the result of an experiment is unique or certain, then the experiment is
said to be deterministic in nature.
If the result of the experiment is not unique and can be one of the several possible outcomes
then the experiment is said to be probabilistic in nature.
• If the probability of occurrence of an event E is P(E) and the probability of non-occurrence is P, then,
as P(E): P. Hence, the odds in favour of E are the odds against E are
Simple Event : An event which cannot be further split is called a simple event. The set of all
simple events in a trial is called a sample space.
Compound Event : When two or more events occur in relation with each other, they are
called compound events.
Conditional Event: If El and E2 are events of a sample space S and if E2 occurs after the
occurrence of El, then the event of occurrence of E2 after the event El is called conditional
event of E2 given El. It is denoted by E2/El.
‘Smart’ Facts
When a die is rolled six events occur. They are {1, 2, 3, 4, 5 and 6}
When two dice are rolled 36 events occur. They are [(1,1), (1,2), (1,3), (1,4), (1,5), (1,6), (2,1),
(2,2), (2,3), (2,4), (2,5), (2,6), (3,1), (3,2), (3,3), (3,4), (3,5), (3,6), (4,1), (4,2), (4,3), (4,4), (4,5),
(4,6), (5,1), (5,2), (5,3), (5,4), (5,5), (5,6), (6,1), (6,2), (6,3), (6,4), (6,5), (6,6)]
When a coin is tossed 2 events occur. They are {H, T}
When two coins are tossed 4 events occur. They are {HH, HT, TH, T T}
When three coins are tossed 8 events occur. They are {HHH HHT, HTH, HT T, T HH, THT, T
TH, T T T}
In a pack of 52 cards there are 26 red cards and 26 black cards. The 26 red cards are divided
into 13 heart cards and 13 diamond cards. The 26 black cards are divided into 13 club cards
and 13 spade card. Each of the colours, hearts, diamonds, clubs and spades is called a suit.
In a suit, we have 13 cards (ie, A, K, Q, J, 10, 9, 8, 7, 6, 5, 4, 3 and 2)
a)3
4. B represents
(1) Professors who are neither Medical nor Surgical Specialists
(2) Professors who are not Surgical Specialists
(3) Medical Specialists who are neither Professors nor Surgical Specialists
(4) Professors who are not Medical Specialists
(5) None of these
a)3
5. College Professors who are also Medical Specialists are represented by
(1) A
(2) X
(3) Y
(4) Z
(5) None of these
a)x
Study the diagram given belo to answer these questions:
The triangle in the above figure depicts women in villages, the square depicts the unemployed
women and the circle dcepicts the educated women.
6. Educated employed women in villages are represented by
(1) D
(2) E
(3) F
(4) G
(5) B
a)g
7. What does letter D represent?
(1) Uneducated women in villages
(2) Unemployed women in villages who are not educated
(3) Educated unemployed women
(4) Educated employed women
(5) None of these
a)2
8. In the following figure, the boys who are athletes and disciplined are indicated by which
number. The triangle represents girls, the circle athletes, the rectangle boys and the square
disciplined.
(1) 1
(2) 2
(3) 6
(4) 10
(5) None of these
a)2
Simple Interest
It is the sum which is paid by the borrower to the lender for using the money for a specific time period.
The money borrowed is called the Principal. The rate at which the interest is calculated on the
principal is called Rate of Interest. The time for which the money is borrowed is Time and the total
sum of principal and interest is called the Amount.
Simple Interest
If P = Principal, R = Rate per cent per annum T = Number of years, SI = Simple Interest and A =
Amount. Then,
Here, the interest is calculated on the original principal ie, the principal to calculate the interest
remains constant throughout the time period. The interest earned on the principal is not taken into
account for the purpose of calculating interest for later years.
Compound Interest
In compound interest, the interest is added to the principal at the end of each period and the amount
thus obtained becomes the principal for the next period. The process is repeated till the end of the
specified time.
If P = Principal,
R = Rate per cent per annum
Time = Number of years,
CI = Compound Interest
A = Amount. Then,
When the interest is compounded annually
Important Formulae
1. If the rate of interest differs from year to year ie, R1 in the first year, R2 in the second year, R3 in
the third year.
Then
2. When the principal changes every year, we say that the interest is compounded annually. Then,
3. When the principal changes as per every six months, we say that the interest is compounded half
yearly or semi-annually. Then,
4. When the principal changes every three months, we say that the interest is compounded quarterly.
Then,
5. When the principal changes after every month, we say that the interest is compounded monthly.
Then,
6. When the interest is compounded annually but time is in fraction say year.
7. The difference between the simple interest and compound interest for 2 year (or terms) is given by
the formula
Where D is the difference, P is the principal and R is the rate of interest.
8. Present worth of x ` due n years, hence is given by
3. Sum of money becomes Rs. 13,380 after 3 years and Rs. 20,070 after 6 years on compound
interest. The sum is:
1. Rs. 9200
2. Rs. 9000
3. Rs. 8920
4. Rs. 9040
5. Rs. 9500
A)3
4. A sum of Rs. 12,000 deposited at compound interest becomes double after 5 years. After 20
years, it will become:
1. Rs. 1,10,000
2. Rs. 1,30,000
3. Rs. 1,24,000
4. Rs. 1,92,000
5. Rs. 1,50,000
A)4
5. A sum of money placed at compound interest doubles itself in 5 years. It will amount to
eight times itself at the same rate of interest in:
1. 7 years
2. 12 years
3. 15 years
4. 30 years
5. 21 years
A)3
6. If a sum on compound interest becomes three times in 4 years, then with the same interest
rate, the sum will become 27 times in:
1. 11 years
2. 12 years
3. 24 years
4. 38 years
5. 21 years
A)2
7. The least number of complete years in which a sum of money put out at 20% compound
interest will be more than doubled is:
1. 7
2. 4
3. 5
4. 8
5. 7
A)2
8. A man borrows Rs. 2550 to be paid back with compound interest at the rate of 4% per
annum by the end of 2 years in two equal yearly instalments. How much will each instalment
be?
1. Rs.1275
2. Rs.1383
3. Rs.1352
4. Rs.1287
5. Rs.1250
A)3
9. What annual payment will discharge a debt of Rs. 1025 due in 2 years at the rate of 5%
compound interest?
1. Rs.650
2. Rs.551.25
3. Rs.560
4. Rs.660.75
5. Rs.600
A)2
10. A man borrows Rs. 12,500 at 20% compound interest. At the end of every year he pays Rs.
2000 as part repayment. How much does he still owe after three such instalments?
1. Rs.14,000
2. Rs.13,684
3. Rs.15,600
4. Rs.14,320
5. None of these
A)5