1.

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

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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