OCR H240/01 — Question 7 10 marks

Exam BoardOCR
ModuleH240/01 (Pure Mathematics)
Marks10
PaperDownload PDF ↗
TopicArithmetic Sequences and Series
TypeReal-world AP: find n satisfying a condition
DifficultyModerate -0.8 This is a straightforward application of standard arithmetic and geometric series formulas to a real-world context. Parts (a)-(c) require direct substitution into well-known formulas (S_n = n/2(2a + (n-1)d) and S_n = a(1-r^n)/(1-r)), with part (c) involving solving a quadratic equation. Part (d) requires basic understanding of series convergence. No novel problem-solving or insight needed—purely routine application of AS-level series content.
Spec1.04h Arithmetic sequences: nth term and sum formulae1.04i Geometric sequences: nth term and finite series sum1.04j Sum to infinity: convergent geometric series |r|<1

7 Business A made a \(\pounds 5000\) profit during its first year.
In each subsequent year, the profit increased by \(\pounds 1500\) so that the profit was \(\pounds 6500\) during the second year, \(\pounds 8000\) during the third year and so on. Business B made a \(\pounds 5000\) profit during its first year.
In each subsequent year, the profit was 90\% of the previous year's profit.
  1. Find an expression for the total profit made by business A during the first \(n\) years. Give your answer in its simplest form.
  2. Find an expression for the total profit made by business B during the first \(n\) years. Give your answer in its simplest form.
  3. Find how many years it will take for the total profit of business A to reach \(\pounds 385000\).
  4. Comment on the profits made by each business in the long term.

7 Business A made a $\pounds 5000$ profit during its first year.\\
In each subsequent year, the profit increased by $\pounds 1500$ so that the profit was $\pounds 6500$ during the second year, $\pounds 8000$ during the third year and so on.

Business B made a $\pounds 5000$ profit during its first year.\\
In each subsequent year, the profit was 90\% of the previous year's profit.
\begin{enumerate}[label=(\alph*)]
\item Find an expression for the total profit made by business A during the first $n$ years.

Give your answer in its simplest form.
\item Find an expression for the total profit made by business B during the first $n$ years.

Give your answer in its simplest form.
\item Find how many years it will take for the total profit of business A to reach $\pounds 385000$.
\item Comment on the profits made by each business in the long term.
\end{enumerate}

\hfill \mbox{\textit{OCR H240/01  Q7 [10]}}