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A sequence is said to be in Arithmetic Progression when they increase or decrease by a constant number. This constant number is called the common difference (c.d) of the arithmetic progression. Example: 1, 3, 5, 7, ...... c.d. = 2 7, 3, 1, 5, 9 c.d. = 4

8, 5, 2, 1, 4

c.d. = 3

Nth term of AP

Number of terms

Tn = a + (n-1)d

Common difference

First term

Sum to n terms

First term

Number of terms Common difference

Given that first term of a series is 7 and the last term of the same to be 49. The sum of the series is 336. Find the number of elements in this series and the common difference. a=7 Tn =49 Sn = 336 n=? d=?

Tn = a + (n-1)d 49 = 7 + (n-1)d (1) Sn = n/2[2a + (n-1)d] 336 = n/2[2*7 + (n-1)d] 336 = n/2[14 + 42] ( from equation 1) 336 = 28n n= 336/28 = 12 Substituting the value of n in equation 1 49 = 7 + 11d d = 42/11

A gentleman buys every year Bank's cash certificates of value exceeding the last year's purchase by Rs. 300. After 20 years, he finds that the total value of the certificates purchased by him is Rs. 83,000. Find the value of the certificates purchased by him in the 13th year.

Given: d = 300 n = 20 Sn = 83000 Sn = n/2[2a + (n-1)d] 83000 = 10[2a + 19*300] 83000 = 10[2a + 5700] 8300-5700 = 2a 2600/2 = a a = 1300

the value of the certificates purchased by him in the 13th year = 13th term 13th term = a + (13-1)d => 13th term = 1300 + 12*300 13th term = 4900 the value of the certificates purchased by him in the 13th year = 4900

The sum of the first and the 9th term of an arithmetic progression is 24. What is the sum of the first nine terms of the progression? Given: 1st term + 9th term = 24

a + a + 8d = 24

2a

The sum of the first 50 terms common to the Arithmetic Sequence 15, 19, 23..... and the Arithmetic Sequence 14, 19, 24..... is. Given: series 1 : 15, 19, 23.. a = 15, d = 4 series 2 : 14, 19, 24. a = 14, d = 5

The series whose terms are common to both will also be an arithmetic series with common difference = LCM of the common differences of the two given series so the common difference of the required series = 20 First term = 19 Sum to 50 terms = 25[2*19+49*20] => Sum to 50 terms = 25[38+980] => Sum to 50 terms = 25[38+980] = 25450

How many terms should be taken of the series 42, 39, 36.. To make 315. Given: series 42, 39, 36 .. Since 39 42 = 36 39 = -3 so the series is arithmetic. First term a = 42 Common difference d = -3 Sum to n terms S = 315 n=?

S = n/2[2a + (n-1)d] 315 = n/2[2*42 + (n-1)*(-3)] 315 = n/2[84 -3n + 3] 315 = n/2[87 -3n] 630 = n [87 -3n] 630 = [87n - 3n2] 3n2 87n + 630 = 0 n2 29n + 210 = 0 n2 14n 15n + 210 = 0 n(n-14) -15(n- 14) = 0 (n-14) (n-15) = 0, n= 14 or 15

The sum of 5 numbers in AP is 75 and the product of the greatest and the least is 161. Find out the greatest number of the series. Let the five numbers be a-2d, a-d, a, a+d and a+2d Sum = 75 => a-2d + a-d + a + a+ d +a+2d = 75 5a = 75 a = 15

Product of the greatest and the least = 161 (a + 2d) (a 2d) = 161 (15 + 2d) (15 2d) = 161 225 - 4d2 = 161 4d2 = 225-161 4d2 = 64 d2 = 16 d = 4 greatest number = a + 2d = 15 + 2*4 = 23

The first term and the fifth term of an arithmetic progression containing of five terms are 2 and 14 respectively. The first term and fourth term of another arithmetic progression containing four terms are 3 and 9 respectively. If all terms in both the series are added together then their sum will be equal to

Series 1 a = 2 5th term = a + 4d = 14 d= 3, n = 5 Sum to 5 terms = 5/2[2a + 4d] Sum to 5 terms = 5/2[4 + 12] Sum to 5 terms = 40

Series 2 a = 3 4th term = a + 3d = 9 d = 2, n = 4 Sum to 4 terms = 4/2[2a + 3d] => Sum to 4 terms = 2[6+6]= 24

ABC transformers has produced 780 transformers in 2008 and is decreasing the annual production by 40 transformers per year because of the competition by Class transformers. Class transformers has produced 100 transformers in 2008 and is increasing the annual production by 30 transformers. In which year Class transformers will become the larger producer?

Let by nth year Class transformers will become larger producer Then nth term of Class transformer > nth term of ABC transformers For Class transformer a = 100, d = 30 For ABC transformer a = 780, d= -40 100 + (n-1) 30 > 780 + (n-1) (-40) 100 + 30n -30 > 780 40n + 40 70n > 750 n > 750/70 n> 10.71 From 11th year (2019) Class transformer will be the larger producer.

A machine is bought for Rs. 90000 and the depreciation on it is assessed at Rs. 7200 per year. What will be its book value at the end of eight years? Given: a =90000 Depreciation d = -7200 n=9 9th term = a + 8d 9th term = 90000 8*7200 9th term = Rs. 32400

Find the annual salary increment of a man who retires after his 37th year , having earned Rs. 61700 in his fifth year and an average of Rs. 100900 over his whole career. Given: 5th term = 61700 a + 4d = 61700.1 Average salary over his whole career = 100900

Total

salary earned = average salary * years of employment total salary earned = 100900*37 = 3733300 37/2[2a + (37-1)d] = 3733300 2a + 36d = 3733300*2/37 a + 18 d = 100900..2 By solving equations 1 and 2 d = 2800 Annual salary increment of the person = Rs. 2800

The salary of a company secretary is increased by a fixed increment each year. If his total earnings over nine years are Rs. 2340000 and his salary in the final year is Rs.295000, what was his salary in the sixth year? Since the salary is increased by a fixed increment each year so the series is AP Sum to 9th term = 2340000 9th term = 295000

9/2[2a

+8d] = 2340000 a + 4d = 2600001 a+ 8d = 295000..2 By solving equation 1 and 2 d = 8750, a = 225000 Salary in the 6th year = a + 5d Salary in the 6th year = 225000 + 5*8750 Salary in the 6th year = Rs. 268750

Geometric progression (also inaccurately known as a geometric series) is a sequence of numbers such that the quotient of any two successive members of the sequence is a constant called the common ratio of the sequence. A sequence with a common ratio of 2 and a scale factor (first term) of 1 is 1, 2, 4, 8, 16, 32... A sequence with a common ratio of -1 and a scale factor (first term) of 5 is 5, -5, 5, -5, 5, -5,...

If the common ratio is: Negative, the results will alternate between positive and negative. Greater than 1, there will be exponential growth towards infinity (positive). Less than -1, there will be exponential growth towards infinity (positive and negative). Between 1 and -1, there will be exponential decay towards zero. Zero, the results will remain at zero

Nth term

First term

Tn =

Common ratio

n-1 ar

Number of terms

If common ratio > 1 Sum to n terms sn = a(rn -1)/(r-1) If common ratio < 1 Sum to n terms sn = a(1 -rn)/(1- r)

Find the cost of an annuity of Rs. 25000 for 15 years, if compound interest is allowed at 3% per annum. Given: a =25000 n = 15 years r = 3% =1.03 P = a(rn 1)/rn(r-1) P = 25000(1.0315 1) /1.0315(1.03-1)

A firm borrows Rs. 1000000 and repays it by three equal sums at the ends of the following three years. What is the amount of each repayment, if compound interest at 41/2% is allowed? Given: p =1000000 n =3 r= 1.045 a=? P = a(rn 1)/rn(r-1) a=p rn(r-1) (rn 1)

What sum should be paid for an annuity of Rs. 25000 per annum, to be paid half-yearly commencing in six months time, if compound interest is allowed at 14% per annum and compounded half yearly and the annuity is to last (A) 10 years (B) 20 years (C) What is the amount payable in the above case in perpetual case?

Given: a= Rs. 25000 Compound interest 14% per annum compounded half yearly (14/2) r = 1.07 (A) Time = 10 years n = 20 P = a(rn 1)/rn(r-1) P = 25000(1.0720 1)/1.0720(1.07-1) (B) Time = 20 years n = 40 P = a(rn 1)/rn(r-1) P = 25000(1.0740 1)/1.0740(1.07-1)

A small water pump costs Rs. 6200 and is expected to last for 14 years and then have a scrap value of Rs. 740. If depreciation is to be calculated as a fixed percentage of the current book value at the end of each year, what should the percentage be? Since depreciation is to be calculated as a fixed percentage of the current book value so the series is GP

Given: a = Rs. 6200 n = 15 15th term = 740 r=? ar14 = 740 r14 = 740/6200 = 0.11935

Matsushita Electronics Ltd is a reputed manufacturer of TV sets sold as a brand name of Panasonic. It has produced 150000 TV sets in India five years back. If the total production of the company today, at the end of 5th year of operations in India, is 800000 TV sets, then: A. Estimate by how many units, production has increased each year if the increase in terms of number of units is the same each year.

B. Estimate by how many units production has increased each year if the increase in terms of percentage of last years production is the same every year. C. Based on the annual increment in production in both fixed units and percentage terms, forecast the amount of production for the 10th year. D. If the total market size is 3000000 TV units today and is growing by 5 percent per annum, in how many years would Matsuhita grab 50 percent of the market if it keeps growing at the same percentage rate calculated earlier?

Given: Production of TV before 5 years = 150000 a = 150000 5th term = 800000 A. increase in terms of number of units is the same each year. The series is AP 5th term = 800000 a + 4d = 800000 150000 + 4d = 800000 4d = 650000 => d = 162500

B. The increase in terms of percentage of last years production is the same every year. The series is GP a = 150000 5th term = 800000 ar4 = 800000 r4 = 800000/150000 r =1.52(approx)

C . For fixed units of increment (AP) 10th years production = a + 9d 10th years production = 150000 + 9* 162500 10th years production = 1612500 For percentage increment(GP) 10th years production = ar9 10th years production = 150000*1.529 10th years production = 6496561.44

D. Total market size =a =3000000 growing by 5% per annum r = 1.05 Let after n years Matsuhita will grab 50 percent of the market Then nth term of Matsuhita = 50% of nth term of the market size 800000*1.52n = * 3000000*1.05n 1.52n /1.05n= * 3000000/800000 1.447n = * 3000000/800000 1.447n = 1.875

Find out the sum of an infinite geometrical series whose first three terms are 10, 5 and 2.5 respectively. Given: Infinite geometric series 10, 5, 2.5 a = 10, r = 5/ 10 = Sum to infinity = a/ (1-r) Sum to infinity = 10/(1-1/2) Sum to infinity = 20

Find the geometric series in which the 10th term is 320 and 6th term is 20. 10th term = 320 ar9 = 3201 6th term = 20 ar5 = 20..2 Dividing equation 1 by equation 2 ar9/ar5 = 320/20

r4

= 16 r = 2 Substituting the value of r in equation 2 a25 = 20 a*32 = 20 a = 20/32 = 5/8 So the series is 5/8, 5/4, 5/2, 5 ..

Company has bought a printer for Rs.10000. This machine is expected to be utilized for the next 5 years and the salvage value at the end of five years is expected to be RS. 1000 only. Calculate the depreciation by straight method Calculate the depreciation by Reducing balance method

Annual depreciation = (total cost salvage value)/ no. of years Annual depreciation = (10000 -1000)/5 = Rs. 1800 per year Rate of depreciation = x X% of depreciable cost = 1800 X% of (10000-1000) = 1800 X = 20%

Period

Depreciable cost

9000

Depreciation rate

20%

Depreciation expense

1800

Accumulated depreciation

1800

Book value

8200

2011

2012

9000

20%

1800

3600

6400

2013

9000

20%

1800

5400

4600

2014

9000

20%

1800

7200

2800

2015

9000

20%

1800

9000

1000

This method uses depreciation rate which is twice the straight line depreciation rate. Straight line depreciation rate = 20% So reducing balance depreciation rate = 40 %

Period

2011

2012

6000

40%

2400

6400

3600

2013

3600

40%

1440

7840

2160

2014

2160

40%

864

8704

1296

2015

1296

22.83%

296

9000

1000

A stamping machine bought for Rs. 50000 is expected to be utilized for the next 10 years. The salvage value at the end of 10 years is expected to be Rs. 20000 Calculate the depreciation (A) By straight line depreciation method (B) By reducing balance method

Annual depreciation = (total cost salvage value)/ no. of years Annual depreciation = (50000 -20000)/10 = Rs. 3000 per year Rate of depreciation = x x% of depreciable cost = 3000 x% of (50000-20000) = 3000 x = 10%

Period 2011

Depreciable Depreciation Depreciation Accumulated cost rate expense depreciation 30000 10% 3000 3000

2012

2013 2014 2015 2016 2017 2018 2019 2020

30000

30000 30000 30000 30000 30000 30000 30000 30000

10%

10% 10% 10% 10% 10% 10% 10% 10%

3000

3000 3000 3000 3000 3000 3000 3000 3000

6000

9000 12000 15000 18000 21000 24000 27000 30000

44000

41000 38000 35000 32000 29000 26000 23000 20000

This method uses depreciation rate which is twice the straight line depreciation rate. Straight line depreciation rate = 10% So reducing balance depreciation rate = 20 %

Depreciable Depreciation Depreciation cost rate expense 50000 40000 20% 20% 10000 8000

2013

2014 2015 2016 2017 2018 2019 2020

32000

25600 20480 20000 20000 20000 20000 20000

20%

20% 2.34% ------

6400

5120 480 ------

24400

29520 30000 30000 30000 30000 30000 30000

25600

20480 20000 20000 20000 20000 20000 20000

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