CA Foundation · Quantitative Aptitude · Sequence and Series
A company's annual sales grow so that each year's increase is 10% of the previous year's sales. If sales in the first year are ₹2,00,000, what are the total sales over the first 4 years?
Total sales over four years are ₹9,28,200. Sales form a geometric progression with first term 2,00,000 and ratio 1.1, so the sum of four terms is 2,00,000 multiplied by (1.1 to the power 4 minus 1) divided by 0.1, which equals 9,28,200.
- A₹8,00,000
- B₹9,28,200Correct
- C₹8,82,000
- D₹10,21,020
Explanation
Sales form a GP with a = 2,00,000 and r = 1.1. S4 = 2,00,000 × (1.1^4 − 1)/0.1 = 2,00,000 × 4.641 = ₹9,28,200. The option ₹8,00,000 ignores growth, and ₹10,21,020 uses five terms.
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