Application Based questions
1. Find 9th term of the following series: 5, 10, 20, 40 ……
2. The 3rd and the 8th term of a G. P. are 4 and 128 respectively. Find the G. P.
3. Which term of the G. P.: 6, –12, 24, – 48, ... is 384?
4. The 1st term of a GP is 64 and the 5th term is 4. If the sum of all terms is 128, what is the
common ratio?
5. Find the sum of GP.: 1, 2,4,8, ... up to the 10th term.
6. Find the sum of an infinite GP 3,1,1/3,…. ?
7. Sum of infinite terms of a GP is 12. If the first term is 8, what is the 4th term of this GP?
8. How many terms of the following G. P.: 64, 32, 16, … has the sum 127 ½
9. Find the sum up to n terms of the sequence: 0.7, 0.77, 0.777, …
10. Express the following recurring decimal as an infinite G. P. and find its value in rational
̅̅̅̅
form: 0.3
11. Sum of first 12 terms of a GP is equal to the sum of the first 14 terms in the same GP. Sum
of the first 17 terms is 92, what is the third term in the GP?
12. Product Price Growth
A company launches a new product priced at ₹1,000. The price is expected to increase by
10% every year.
a. What will the price of the product be after 5 years?
b. What is the total of all prices over the 5 years (if one unit is sold each year)?
13. Present Value of Future Payments
A company agrees to pay a consultant ₹1,00,000 in the first year, with the payment
increasing by 10% each year for 8 years.
a. What is the total amount payable over 8 years?
b. If the discount rate is 12% per year, what is the present value of these payments?
14. Royalty Payments
An author receives royalties of ₹80,000 for the first year. Due to a declining market, the
royalty is expected to decrease by 15% every year.
a. How much will the author receive in the 6th year?
b. What is the total royalty over 6 years?
15. Inventory Cost Growth
The cost of maintaining inventory in a warehouse is ₹50,000 in the first quarter. Each
quarter, due to inflation, the cost rises by 5%.
a. What will be the cost in the 10th quarter?
b. What is the total inventory cost over 10 quarters?
16. Present vs Future Investment
A startup invests ₹5,00,000 in year 1 and plans to double its investment every 3 years.
Simultaneously, the return rate is 15% per year compounded annually.
a. After 15 years, what is the total amount invested by the startup?
b. What will be the future value of all these investments at the end of 15 years (considering
the 15% annual compounding on each investment from its year of deposit)?
Assumption: The startup makes one investment at the end of each year. The amount
invested in year 1 is ₹5,00,000 and the amount invested doubles every 3 years.
17. Infinite Declining Subscription Revenue
A company sells a subscription where each new batch of customers brings in ₹2,00,000
revenue in the first month, but the number of customers drops to 80% every next month
indefinitely.
a. What is the total lifetime revenue from all batches if this pattern continues infinitely?
b. If operating cost is ₹50,000 per month fixed, from which month onwards will the
company stop making profit?
18. Mixed GP with Changing Ratio
A company offers an incentive scheme: For the first 5 years, the bonus grows at 10% per
year, and for the next 5 years, it grows at 20% per year, starting from ₹10,000. What is the
total bonus paid over 10 years?
19. Price Erosion and Replacement Cycle
A company owns machinery worth ₹50,00,000. Each machine loses 25% of its value
each year. Every end of the 4th year, the company sells the old machine at its
depreciated value and buys a new one for the same original price.
a. Over 12 years, what is the total resale value received?
b. What is the total capital spent on buying new machines?
20. Commission in a Pyramidal Scheme
Each salesperson recruits 3 new salespeople, and each of those recruits 3 more, and so on
(up to 4 levels). The company pays a commission of ₹500 per recruit at level 1, and each
deeper level gets 80% of the previous level's commission.
a. How much total commission will the original salesperson earn from all levels?
b. How much revenue does the company need if they want to exactly cover these
commissions?
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