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Aman receives a pension starting with Rs.1000 for the first year. Each year he receives 80% of what he received the previous year. Find the maximum total amount he can receive even if he lives forever. (a) 4000 (b) 5000 (c) 1500 (d) 4900 |
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Answer» Correct option (b) 5000 Explanation: We need to find the infinite sum of the GP: 1000, 800, 640….. (first term = 1000 and common ratio = 0.8) We get: infinite sum of the series as 1000/ (1 − 0.8) = 5000, |
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