Question

The following graph shows the percentage change in the revenue of a company, during a period of 15 years, i.e., from the year 2005 to the year 2019.


Q3. If in a period of five consecutive years between 2005 and 2019 the revenue of the company does not exceed 125 million in any of those 5 years, then what is the maximum possible revenue (in Rs. million) of the company in the year 2018?

• A. 105
• B. 90
• C. 120
• D. 112

Answer 1

The correct option is A 105

Let the revenue of the company in the year 2004 be Rs. 100x.

So, the revenue of the company in year 2005 will be = 100x + 100x × 25% = 125x

Similarly, we can find the revenue of the company for all the remaining years.

Now, we need to find out a period of five years such that the revenue in those years is as low as possible because it will maximise the value of x and thus, maximise the revenue of year 2019. So, to maximise the value of x, this five-year period should be from 2014 to 2018.

Now, maximum revenue in these five years can be 125 million, i.e., it will be in the year 2014.

So, 125x = 125 million

⇒ x = 1 million

Required answer = 105x = 105 million

Hence, 105 is correct.