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Question

Vijay inherited huge wealth from his father and by establishing a soft drinks company, he squared his wealth. He started a company that manufactures airplane toys and incurred huge losses amounting to k (>0) times the wealth he inherited from his father. His total assets now stand at the debt of 4 crores. For what value of k is the above scenario possible?

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Solution

Let the wealth inherited by Vijay be ‘x’ crores.
His wealth became x2 because of the soft drinks company.
But the toys manufacturing company brought a loss of kx.
Now the wealth of Vijay will be x2kx.
This was mentioned to be equal to -4 crores

x2kx=4

x2kx+4=0

For this scenario to be possible, D0k2160

k216

k4k>0

So, k is any value greater than or equal to 4.

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