Edexcel C2 2013 January — Question 3

Exam BoardEdexcel
ModuleC2 (Core Mathematics 2)
Year2013
SessionJanuary
TopicGeometric Sequences and Series

3. A company predicts a yearly profit of \(\pounds 120000\) in the year 2013 . The company predicts that the yearly profit will rise each year by \(5 \%\). The predicted yearly profit forms a geometric sequence with common ratio 1.05
  1. Show that the predicted profit in the year 2016 is \(\pounds 138915\)
  2. Find the first year in which the yearly predicted profit exceeds \(\pounds 200000\)
  3. Find the total predicted profit for the years 2013 to 2023 inclusive, giving your answer to the nearest pound.