CAIE P1 2005 November — Question 6

Exam BoardCAIE
ModuleP1 (Pure Mathematics 1)
Year2005
SessionNovember
TopicGeometric Sequences and Series

6 A small trading company made a profit of \(
) 250000\( in the year 2000. The company considered two different plans, plan \)A\( and plan \)B$, for increasing its profits. Under plan \(A\), the annual profit would increase each year by \(5 \%\) of its value in the preceding year. Find, for plan \(A\),
  1. the profit for the year 2008,
  2. the total profit for the 10 years 2000 to 2009 inclusive. Under plan \(B\), the annual profit would increase each year by a constant amount \(
    ) D\(.
  3. Find the value of \)D$ for which the total profit for the 10 years 2000 to 2009 inclusive would be the same for both plans.