CA Foundation · Quantitative Aptitude · Sequence and Series
A company's annual sales grow by 10% each year. If sales in the first year were ₹5,00,000, what is the total sales over the first 4 years? (Use 1.1^4 = 1.4641)
Total sales over four years are ₹23,20,500. Sales form a geometric progression with first term ₹5,00,000 and ratio 1.1, so the sum is 5,00,000 × (1.1⁴ − 1)/0.1 = 5,00,000 × 4.641 = ₹23,20,500.
- A₹23,20,500Correct
- B₹20,00,000
- C₹22,00,000
- D₹7,32,050
Explanation
Sales form a GP with a = 5,00,000 and r = 1.1. Sum = 5,00,000 × (1.4641 − 1)/0.1 = 5,00,000 × 4.641 = ₹23,20,500. The option ₹20,00,000 wrongly treats sales as constant, and ₹7,32,050 is just the fifth-year-style term 5,00,000×1.4641.
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