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CMA Foundation · Fundamentals of Business Mathematics and Statistics · Arithmetic Progression and Geometric Progression

Mehta Enterprises pays its salesman a commission that forms an AP: Rs 1,200 in the first month, rising by a fixed amount each month. In the 11th month the commission is Rs 2,700. What is the commission in the 16th month?

The 16th month commission is Rs 3,450. From the 1st to the 11th month the commission rises by Rs 1,500 in 10 steps, so the monthly rise is Rs 150. Adding 15 rises to Rs 1,200 gives Rs 3,450.

  1. ARs 3,350
  2. BRs 3,450Correct
  3. CRs 3,300
  4. DRs 3,600

Explanation

a + 10d = 2,700 with a = 1,200 gives 10d = 1,500, so d = 150. The 16th term = 1,200 + 15 x 150 = 1,200 + 2,250 = 3,450. Rs 3,600 results from adding 16d instead of 15d.

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