Question

Modern Vehicles Company came up with two different plans for the next financial year. Plan Y: Increase vehicle production by 5% every year. Plan Z: Increase production by 300 vehicles every year. If the company produced 10,000 vehicles in the present year, which plan will make the company produce more vehicles after a period of four years?

Answer 1

Answer: plan Y will produce more vehicles after 4 years.

Step-by-step explanation:

1) Plan Y: Increase vehicle production by 5% every year. It means that the rate of production is in geometric progression. The formula for determining the sum of n terms, Sn of a geometric sequence is expressed as

Sn = (ar^n - 1)/(r - 1)

Where

n represents the number of term(years) in the sequence.

a represents the first term(number of vehicles in the present year) in the sequence.

r represents the common ratio.

From the information given,

a = 10000

r = 1 + 5/100 = 1.05

n = 4 years

Therefore, the sum of the vehicles produced in the first 4 years, S4 is

S4 = (10000 × 1.05^(4) - 1)/1.05 - 1

S4 = (10000 × 0.21550625)/0.05

S4 = 2155.0625/0.05

S4 = 43101 vehicles

2) Plan Z: Increase production by 300 vehicles every year. It means that the rate of production is in geometric progression. The formula for determining the sum of n terms of an arithmetic sequence is expressed as

Sn = n/2[2a + (n - 1)d]

Where

n represents the number of terms in the arithmetic sequence.

d represents the common difference of the terms in the arithmetic sequence.

a represents the first term of the arithmetic sequence.

From the information given,

n = 4 years

a = 10000

d = 300

Therefore, the sum of the first 4 terms, S4 would be

S4 = 4/2[10000 × 2 + (4 - 1)300]

S4 = 2[20000 + (3)300]

S4 = 2 × 20900

S4 = 41800 vehicles