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CA FOUNDATION - PAPER 3: BUSINESS MATHEMATICS, LOGICAL REASONING AND STATISTICS
Chapter -1: Ratio, Proportion, Indices and Logarithms
At the foundation level the concepts of Ratio, Proportion, Indices and Logarithms is used in accounting and finance. Here
in this capsule an attempt is made for solving and understanding the concepts of Ratio, Proportion and Indices with the
help of following questions with solutions.

Unit 1: Ratio 3.6

0.75. Clearly 3.6 : 4.8 is greater ratio.
Ratio Definition 4.8
If a and b are two non-zero number of same kind then fraction Unit-II Proportion
a/b is called RATIO of a to b. It is denoted by a : b . Here a is
called ANTECEDENT and b is called CONSEQUENT. DEFINITION: AN EQUALITY OF TWO RATIO IS
For example, Ratio of two numbers 4 and 6 is 2 : 3. CALLED A PROPORTION.
If a, b, c, d are four numbers then a : b = c : d [Also written as
(i) the ratio between √5 and √6 is √5 : √6
a : b : : c : d] is called Proportion of four numbers.
(ii) the ratio between 150gm and 2 kg. is 3 : 40
a:b=c:d
(iii) the ratio between 25 minutes and 45 Seconds is 100 : 3
a c
INVERSE RATIO: If a:b then b:a is called inverse ratio of a:b ∴ =
b d
Example: The inverse ratio of 11: 15 is 15: 11
∴ad=bc
Duplicate Ratio: If a : b is a given ratio then Duplicate Ratio
is a2:b2 [Product of 1st and 4th] = [Product of 2nd and 3rd]
Example: The duplicate ratio of 2: 3 4: 9 Note: If a : b = c : d then 'd' is called 'Fourth Proportion'
SUB DUPLICATE RATIO: If a : b is given ratio then √a : √b Mean Proportion: If a, b, c are in CONTINUOUS
is called SUB DUPLICATE RATIO PROPORTION then MIDDLE TERM b is called the MEAN
PROPORTION. b^2=ac then b=√ac Mean Proportion
Example: The Sub Duplicate Ratio of 25 : 16 is 5 : 4
Note: MEAN PROPORTION of two number x and y is √xy
Triplicate Ratio: If a : b is given ratio then is a3:b3 called
Triplicate Ratio TYPES OF PROPORTION
Example: Triplicate Ratio of 3 : 2 is 27 : 8 1. INVERTENDO PROPORTION
Sub-Triplicate Ratio: If a : b is a given ratio then ∛a ∶ ∛b is If a:b=c:d then b:a=d:c is called INVERTENDO PROPORTION
called Sub Triplicate Ratio of a : b 2. ALTERNENDO PROPORTION
Example: Sub Triplicate Ratio of 125 : 27 is 5 : 3 If a:b=c:d then a:c=b:d is called ALTERNENDO PROPORTION
Compounded Ratio: The Ratio Compound of a : b and c : d 3. COMPONENDO PROPORTION
is ac : bd. If a:b=c:d then (a+b): b=(c+d):d is called COMPOUND
Compounded Ratio of (a) 5 : 6 and 2 : 3 is 5 : 9 (b) 2 : 5, 5 : 7, PROPORTION
and 6 : is 3 : 14 4. DIVIDENDO PROPORTION
Question 1: Ratio of 5 kg and 15 kg is If a:b=c:d then (a-b):b=(c-d): d is called DIVIDENDO
PROPORTION
5kg 1
Solution: Ratio = = =1:3 5. COMPOUNDED & DIVIDENDO PROPORTION
15kg 3
If a : b=c : d then (a+b) : (a-b) = (c+d) : (c-d) is CALLED
They have same units, so it is a ratio. COMPOUNDED and DIVIDENDO PROPORTION
Question 2: Ratio of 5m and 200 cm; is 6. ADDENDO PROPORTION
Solution: Since 1 metre = 100 cm If a : b = c:d=e:f ………. then (a+c+e ……..) : (b+d+f+ ……..) is
5×100cm 5 called ADDENDO PROPORTION
Ratio of 5 m & 200 cm = = = 5:2 Continuous Proportion: If a, b, c are Continuous Proportion
200cm 2
then
Question 3: Ratio of the height 170 cm and weight 60 kg of a
person is a b
= or b2 = ac
Solution: Cm is unit of length and kg is unit of mass. So, they b c
cannot be converted in same units. 170 cm : 60 kg is not a ratio. i.e. Ratio of 1st of 2nd = Ratio of 2nd to 3rd
Question 4: Which ratio out of the following ratios is greater. i.e. Square of middle term = Product of 1st and last
1 1 Note: If x, y, z a, b, c ............. are Continuous Proportion then
2 :3 and 3.6:4.8
3 3 x y z a b
= = = = = …………………………….
1 1 7 10 y z a b c
Solution: 2 :3 := : =7:10
3 3 3 3 Question 5: If A : B= 2 : 3 ; B : C = 4 : 5 and C : D = 6 : 7 Then
7:10 = 0.70 A : D is equal to

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A B C 2 4 6 Question 9: Varun mixes milk costing Rs. 6.92 per litre with milk
Solution: x x = x x costing Rs. 7.77 per litre and sells the mixture at Rs. 8.80 per litre
B C D 3 5 7 and earns a profit of 17.5% on his sales price. In what proportion
A : D = 16 : 35 does he mix them?
Question 6: Two vessels contain equal quantity of mixtures of Solution:
milk and water in the ratio 9 : 5 and 4 : 3 respectively. Both the Selling price per litre = Rs. 8.80 Less profit 17.5% of 8.80 =
mixtures are mixed find the ratio of milk to water in the new Rs. 1.54 Cost per litre Rs. 7.26 = 3:2
mixture.
Question 10: Two numbers are in the ratio 2 : 3 and the difference
Tricks: Milk : Water sum of their squares is 320. The number are :
Vessel I 9 : 5 ] 14 × 1 = 14 (a) 12,18 (b) 16,24
Vessel II 4 : 3 ] 7 ×2 = 14 (c) 14,21 (d) None
Vessel III (9 + 4×2) : 5 + 3x2] Solution: Tricks Go by choices (a); (b) & (c) all are in ratio 2:3
(Adding corresponding terms of the ratio) But For option
Take LCM of 14 & 7 = 14. (a) 182 -122 ≠ 320
Then make it of equal quantity (i.e. = 14) (b) 242 -162 =( 24 + 16) (24 - 16)
∴ Ratio of Milk to Water in the new vessel = 17 : 11. = 40 x 8 = 320
Question 7: Two vessels containing water and milk in the ratio Question 11: If p : q is the sub-duplicate ratio of p - x2: q - x2,
2 : 3 and 4 : 5 are mixed in the ratio 1 :2. The ratio of milk and then x2 is :
water in the resulting mixture. Solution: Detail Method:-
Tricks √(p-x2 ) p
Solution: Detail Method:- =
Step 1. Milk : Water sum √(q-x )2
q
Vessel I 3:2]5×9=45
Vessel II 5 : 4 ] 9 x 5 = 45 (p-x2 ) p2
Squaring on both side; we get =
Step 2. (q-x )
2
q2
∴Vessel I 27: 18] 45x1 Vessel II 25 : 20 ] 45 x 2 or pq2-q2 x2=p2 q-p2 x2
Step 3. or p2 x2-q2 x2=p2 q-pq2
Mixing Vessel I & Vessel II mixtures, we get Vessel III (27 + 50) :
or x2 (p2-q2)=Pq(P-q)
(18+40) = 77 : 58
Take LCM of 5 & 9 = 45. or x2 (p+q)(p-q)=pq(p-q)
Making same quantities of Vessel I & II i.e. 45. We have to mix pq
the mixtures of vessel I & II in the ratio 1 : 2 or x2=
p+q
∴ Multiply I by 1 and II by 2 ,Then we add. We get the answer.
Question 12: An alloy is to contain copper and zinc in the ratio
Rules of Alligation 9:4. The zinc required to melt with 24 kg of copper is:
It is used in mixing of two varieties of same kind. It is derived Solution: Let Zinc = x kg
from the weighted mean method.
9 24 4×24 32 3
Rule ∴ = ∴x= = =10 kg
4 x 9 3 3
If two varieties of rices with rate Rs. x per kg and Rs. y per kg
are mixed to make a third variety of rice with rate Rs. z per kg. Question 13: Two numbers are in the ratio 7: 8. If 3 is added to
The ratio in which these two varieties are mixed is each of them, their ratio becomes 8 : 9. The numbers are:
Remember Solution: Let x is common in the ratio
(i) If x represents cost then y and z must be cost. ∴ Numbers are 7x & 8x
(ii) If x represents selling price then y and z must be selling
price. 7x+3 8
Now =
(iii) If x represents profit then y and z must be profit or loss. 7x+3 9
or 64x + 24 = 63x + 27
(iv) If x represent milk of 1st mixture then y and z must
represent milk of 2nd mixture and mixed mixture. or 64x - 63x = 27-24
or x = 3
Question 8: Sugar at rate Rs. 15 per kg is mixed with sugar at rate
Rs. 20 per kg in the ratio 2:3. Find the price per kg of the mixture. 1st number = 7x = 7×3 = 21
Solution : Tricks 2nd number = 8x = 8x3 = 24
Question 14: A box contains Rs. 56 in the form of coins of one
20-x 2
= rupee, 50 paise and 25 paise. The number of 50 paise coin is
x-15 3 double the number of 25 paise coins and four times the numbers
x = Rs. 18. of one rupee coins. The numbers of 50 paise coins in the box is:

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Solution: Let No. of 50 Paise coins = x Solution:
x x 1 1 1
∴ No. of Re. 1 coins = and No. of 25 Paise coins = A:B:C= : : ]× LCM of denominator = 60 = 15 : 12 :10
4 2 4 5 6

x x 407
∴ Total Value = ×1+x×0.50+ ×0.25=56 A’s share = x15= Rs. 165
4 2 15+12+10
or 0.25x + 0.50x + 0.125x
407
or 0.875x = 56 B’s share = ×12 =Rs. 132
37
56
or x = =64
0.875 407
C’s share = ×10 = Rs,110
37
Question 15: A bag contains Rs. 187 in the form ofl rupee, 50
paise and 10 paise coins in the ratio 3:4:5. Find the number of Question 19: The incomes of A and B are in the ratio 3 :2 and
each type of coins: their expenditures in the ratio 5 : 3. If each saves Rs. 1,500, then
B’s income is:
Solution: Let x is common in the ratio
Solution: Detail Method Let x is common in the ratio.
No. of 1 Rupee ; 50 Paise and 10 Paise
∴ A’s income = 3x
Coins are 3x ; 4x and 5x
B’s income = 2x
3x×1+4x×0.50+5x×0.10=187
3x-1500 5
187 =
x= =34 2x-1500 3
5.50
or 10x - 7500 = 9x - 4500 or 10x - 9x = 7500 - 4500 or x = 3000:-
∴ No. of 1 Rupee coins = 3x = 3 × 34 = 102
B’s income = 2x = 2x3000 = Rs 6000.
No. of 50 Paise coins = 4x= 4x34 = 136 Question 20: In 40 litres mixture of glycerine and water, the ratio
No. of 10 Paise coins = 5x = 5x34 = 170 of glycerine and water is 3:1. The quantity of water added in the
Question 16: Ratio of earnings of A and B is 4 : 7. If the earnings mixture in order to make this ratio 2:1 is:
of A increase by 50% and those of B decrease by 25%, the new 40
Solution: Glycerine = x 3 = 30 litres.
ratio of their earning becomes 8 : 7. What is A’s earning ? 3+1
Solution: Let x is common in the ratio
40
∴ A’s and B’s present earnings are 4x and 7x respectively From Water = ×1 = 10 litres
4
question Let x liters of water is added to the mixture
4X+4X×0.50 8 30 2
= Then =
7X-7X×0.25 7 10+x 1
6X 8 or 2x + 20 = 30 or x = 5
OR ; =
5.25X 7 Question 21: The third proportional between (a2-b2) and (a+b)2
x cannot be found. ∴ Data is inadequate is:

Question 17: P, Q and R are three cities. The ratio of average (Meanprop.)2
Solution: 3rd Proportion =
temperature between P and Q is 11 : 12 and that between P and R IstProp
is 9: 8. The ratio between the average temperature of Q and R is:
{(a+b)2}2 (a+b)4 (a+b)3
Solution: P : Q = 11 : 12 Q : P = 12 : 11 = = =
a2-b2 (a+b)(a-b) a-b
Q P 12 9 Question 22: If A, B and C started a business by investing
X = X
P R 11 8 Rs. 1,26,000, Rs. 84,000 and Rs. 2,10,000. If at the end of the year
profit is Rs. 2,42,000 then the share of each is:
Q 27
= Q:R=27:22 Solution: Investment ratio is
R 22
A : B : C = 126,000 : 84,000 : 2,10,000 ] ÷14,000
Question 18: Rs. 407 are to be divided among A, B and C so that
their shares are in the ratio = 9:6:15] +3
= 3: 2 : 5
1 1 1
: : The respective shares of A, B, C are:
4 5 6 Rs242,000
A’s share = ×3=Rs72,600
The respective shares of A, B, C are: 3+2+5

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242,000 Question 29: If X varies inversely as square of Y and given that Y
B’s share = ×2 = RS. 48,400 =2 for X = 1, then the value of X for Y =6 will be
10
1 1 k
242,000 Solution: x = =X=K ⇒X=
C’s share = x 5 = Rs. 1,21,000 y 2
y 2
y2
10
When x=1 Then y=2
So, (a) is Correct
4
p 2 2p+q x=
Question 23: If = - then the value of is: y2
q 3 2p-q
4 1
p -2 When y=6, Then x = =
Solution: • ∵ = 62 9
q 3

2p+q 2(-2)+3 -4+3 -1 1 1

Tricks = = = = ∴ x=
20-q 2(-2)-3 -4-3 -7 7 9

Question 24: Fourth proportional to x, 2x, \x +1) is: Question 30: Which of the numbers are not in proportion ?
Solution: Let Fourth Proportional is K. (a) 6,8,5,7 (b) 7,14,6;12
(c) 18,27,12,18 (d) 8,6,12,9
x x+1
∵ = Solution: (a) Go by choices
2x k
6 3 5
or k.x = 2x (x + 1) = ≠
8 4 7
or k = 2 (x + 1) = 2x +2
Question 25: What must be added to each term of the ratio 49 : ∴ (a) is not in proportion
68 so that it becomes 3.: 4 ? Question 31: Find two numbers such that mean proportional
between them is 18 and third proportional between them is 144
Solution:
(a) 9; 36 (A) 8 ; 32
Let x is added to each term
(c) 7 ; 28 (d) 6 ; 14
49+x 3 Solution: (a) is correct Tricks : Go by choices ,
Then =
68+8 4
For (a) Mean Proportional of 9 x 36
or 196 +4x = 204 + 3x
√(9×36)=18 It satisfies 1st condition.
or 4x - 3x = 204 - 196
If 144 is its 3rd condition.
or x = 8
362 =9x144
Question 26: If A : B= 2:5, then (10A + 3B): (5A+2B) is equal to
It also satisfies the 2nd condition.
Solution: It A : B = 2 : 5 Then
Question 32: The mean proportion between 24 and 54 is ______
10A+3B 10×2+3×5 35 7
= = = Solution: Mean_Proportion = √(24×54)=36
5A+2B 5×2+2×5 20 4
Question 33: If P is 25% less than Q and R is 20% higher than Q
= 7:4 the Ratio of R and P
Question 27: In a film shooting, A and B received money in a Solution:
certain ratio and B and C also received the money in the same
Let Q = 100, So, P = 100-025 = 75
ratio. If A gets Rs. 1,60,000 and C gets Rs.2,50,000. Find the
amount received by B ? &R= 100 + 20= 120
Solution: A : B = B : C R 120 8
= =
So, B2 = AC ; P 75 5
So, B = √AC = √1,60,000×2,50,000 Question 34: A person has assets worth Rs. 1,48,200. He wish to
= 400 × 500 = 2,00,000 divide it amongst his wife, son and daughter in the ratio 3 : 2 : 1
respectively. From this assets the share of his son will be
Question 28: The ratio compounded of 4:5 and sub-duplicate of
“a” : 9 is 8:15. Then value of “a” is 2
Solution Share of son = ×1,48,200
4 a 8 3+2+1
Solution:
5
x
√ 9 = 15 = Rs.49,400
Question 35: If x : y = 2 : 3 then (5x+2y): (3x -y) =
4 √a 8
or x = 5x+2y 5×2+2×3 16
5 3 15 Solution: = =
3x-y 3×2-3 3
∴√a = 2 ⇒ a = 4

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Question 36: The first, second and third month salaries of a is the set of real numbers), 'a' is used to denote the continued
person are in the ratio 2:4:5. The difference between the product product of n factors each equal to 'a' as shown below:
of the salaries of first 2 months & last 2 months is Rs. 4,80,00,000. an=a×a×a …………… to n factors.
Find the salary of the second month
Here a^n is a power of "a" whose base is "a" and the index or
Solution: power is "n". For example, in 3×3×3×3=34, 3 is base and 4 is
Let x be common in the ratio. index or power.
1st, 2nd and 3rd month salaries of a person =2x ; 4x ; 5x :-From Qts 1. am.an=(a)m+n
4x×5x-2x×4x = 4,80,00,000. am
or,12x2 -4,80,00,000. 2. =am-n
an
or,x2 = 4000000 x = 2000.
am
2nd month salary = 4x = 4x 2000 3. =(a)m+n
= Rs. 8000 a-n
4. a0=1
Question 37: (2p2-q2)=7pq, where p, q are positive then p : q
5. [am]n = amn
(a) 5:6 (b) 5:7
(c) 3:5 (d) 3:7 1 m
6. [am]^ =(a)^
Solution: (a) is correct n n
15(2p2-q2)=7pq
m
Tricks: Go by choices For (a) put p = 5; q = 6 we get 7. n√am = (a)^
n
15|2×52 -62 |= 3×5×6
8. [ab]m=(a)m.(b)m
or 15x14 = 210
a am
[ ]
m
or 210 = 210 9. =
b bm
Question 38: What must be added to each of the numbers 10,
18,22, 38 to make them proportional: 1
(a) 5 (b ) 2 10. a-m=
am
(c) 3 (d) 9
11. If a =ay ∴x=y
x

Solution: (b) is correct

12. If (a)^x=(b)^x ∴x=y
let x be added.
13. If a^x=1 ∴x=0
10+x 22+x Solved Questions
=
8+x 38+x
Question 1: Value of [a1/8+a-1/8] [a1/8-a-1/8] [a1/4+a-1/4][a1/2+a-1/2]
Tricks: Go by choices.
[Use Formula (a+b)(a-b)=a2-b2]
∴ x = 2 satisfies it.
Question 39: x, y, z together starts a business. If x invests 3 times = [(a1/8)2-(a1/8)2][aι/⊲+a-1/4][a↓/z+a-1/2]
as much as y invests and y invests two third of what z invests, = (a1/4-a-1/4)(a1/4+a-1/4)(a1/2+a-1/2)
then the ratio of capitals of x, y, z is
(a) 3:9:2 (b) 6:3:2 = [(a1/4)2-(a-1/4)2][a1/2+a-1/2]
(c)3:6:2 (d) 6 : 2 : 3 = (a1/2-a-1/2)(aι/2+a-1/2)
Solution: (d) 1
Tricks: Go by choices = (a1/2)2-(a-1/2)2=a-a-1=a-
a
2
6 = 3×2 and 2 = 3× xm+3n⋅x4m-9n
3 Question 2: Simplification of is:
Question 40: If a:b = 2:3,b:c = 4:5,c:d=6:7 then a: d is _____ x6m-6n

2 4 6 16 xm+3nx4m-9n
Solution: Multiply all ratios = x x = Solution:
3 5 7 35 x6m-6n
=x m+3n+4m-9n-6m+6n
1 1 1 1
Q. 41: If , , , are in proportion then x = = x-m
2 3 5 x
Solution: Product of middle two terms = Product of extremes Question 3: If 4X=5y=20z then z is equal to:
1 1 Solution: Let 4χ=5y =20z =k
= ;x=15/2
2x 15 or 4=kI/X;5=k1/y; 20=k↓/Z
UNIT -III INDICES ∴ 20=4×5
Definition: - If n is a positive integer, and 'a' is a real number, J

i.e. n ∈N and a∈R (where N is the set of positive integers and R or : k1/Z = k1/x k y

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1 1
+ y
k1/Z = k K

1 1 1 1 y+x
= + = =
Z x y Z xy

xy
Z =
x+y

Question 4: ( √3 ) 5/2
( 9
) 7/2 ×9 is equal to… ..
9 3√3

Solution: ( √3 ) 5/2
( 9
) 7/2 ×9 is equal to… .. 2n+2n-1
9 3√3 Question 8:
2n+1-2n
31/2
( 31/2
2
= [( 15 7 )] 1/2
×32 2n+2n-1 2n (20+2-1) 1+1/2 3
32 33 Solution: = = =
2n+1-2n 2n (21+20) 2-1 2
Question 9: Simplify 2x1/2 3x-1 if x = 4
Solution: We have 2x1/2 3x-1 = 6x 1/2 x-1 = 6x1/2-1= 6x1/2
6 6 6 6
1 = = = = =3
x 1/2
4 1/2
[2 ] 2 1/2
2
Question 5: If 2x-2x-1 = 4, then the value of xx is: Question 10: Simplify 6ab2c3 × 4b–2c–3d.
Solution: 2^x-2^(x-1) =4
Solution: 6ab2c3 × 4b–2c–3d
or 2x-1 (2-1)=4
= 24 × a × b2 × b–2 × c3 × c–3 × d
or 2x-1 x1=22
or 2x-1 =22 = 24 × a × b2+(–2) × c3+(–3) × d
: -x- 1= 2 = 24 × a × b2 – 2 × c3 – 3 × d
: -x = 3 = 24a b0 × c0 × d = 24ad
∴ xX=33=27
Question 11: Simplify (xa.y–b)3 . (x3 y2)–a
Question 6: If x = 3/3+3-1/3 then fmd value of 3x3-9x
Solution: (xa.y–b)3 . (x3 y2)–a
Solution:
If x=31/3+3-1/3 = (xa)3 . (y–b)3 . (x3)–a . (y2)–a
By Cubing on both sides; we get = x3a–3a . y–3b–2a.
x3=(31/3〉3+(3^-1/3〉3+3.31/3.3-1/3 〈31/3+3-1/3) = x0. y–3b–2a.= 1/y 3b+2a
= 3+3-1 +3×1×X
Question 12: Find x, if x =(x x )x
1
or x3=3+ +3x Solution: x (x)1/2 = xx .xx/2
3
or, x1+ 1/2 = xx + x/2
9+1 or, x3/2 = x3x/2
or x3-3x=
3
[If base is equal, then power is also equal]
or 3x2-9x=10
1 3 3x 3 2
Question 7: Find the value of. [1-{1-(1-x2 )-1)}1] is i.e = or x =1
2 2 2 2 2
Solution: ∴x=1
( 9) x ( 3)
−7 −5
Question 13: Find the value of k from = 3k

( 9) x ( 3)
−7 −5
Solution: = 3k
or, (32 × 1/2) –7 × (31/2) –5 = 3k
or, 3-7-5/2 = 3k
or, 3 –19/2 = 3k or, k = –19/2

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