Edexcel C2 — Question 8 9 marks

Exam BoardEdexcel
ModuleC2 (Core Mathematics 2)
Marks9
PaperDownload PDF ↗
TopicGeometric Sequences and Series
TypeFind year when threshold exceeded
DifficultyModerate -0.8 This is a straightforward application of geometric sequences requiring only standard formulas and basic logarithm manipulation. Part (a) is direct recall, part (b) is a routine 'show that' using logarithms, and parts (c)-(d) involve plugging values into standard formulas. The context is accessible and all steps are procedural with no novel insight required.
Spec1.04i Geometric sequences: nth term and finite series sum1.06f Laws of logarithms: addition, subtraction, power rules1.06g Equations with exponentials: solve a^x = b

A trading company made a profit of £50 000 in 2006 (Year 1). A model for future trading predicts that profits will increase year by year in a geometric sequence with common ratio \(r, r > 1\). The model therefore predicts that in 2007 (Year 2) a profit of £50 000r will be made.
  1. Write down an expression for the predicted profit in Year \(n\). [1]
The model predicts that in Year \(n\), the profit made will exceed £200 000.
  1. Show that \(n > \frac{\log 4}{\log r} + 1\). [3]
Using the model with \(r = 1.09\),
  1. find the year in which the profit made will first exceed £200 000, [2]
  2. find the total of the profits that will be made by the company over the 10 years from 2006 to 2015 inclusive, giving your answer to the nearest £10 000. [3]

A trading company made a profit of £50 000 in 2006 (Year 1).

A model for future trading predicts that profits will increase year by year in a geometric sequence with common ratio $r, r > 1$.

The model therefore predicts that in 2007 (Year 2) a profit of £50 000r will be made.

\begin{enumerate}[label=(\alph*)]
\item Write down an expression for the predicted profit in Year $n$.
[1]
\end{enumerate}

The model predicts that in Year $n$, the profit made will exceed £200 000.

\begin{enumerate}[label=(\alph*)]
\setcounter{enumi}{1}
\item Show that $n > \frac{\log 4}{\log r} + 1$.
[3]
\end{enumerate}

Using the model with $r = 1.09$,

\begin{enumerate}[label=(\alph*)]
\setcounter{enumi}{2}
\item find the year in which the profit made will first exceed £200 000,
[2]

\item find the total of the profits that will be made by the company over the 10 years from 2006 to 2015 inclusive, giving your answer to the nearest £10 000.
[3]
\end{enumerate}

\hfill \mbox{\textit{Edexcel C2  Q8 [9]}}