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?

• A. Any value of “k” is possible
• B. Depends on what amount is inherited initially - “x”
• C. k is any value greater than or equal to 4
• D. None of the above

Answer 1

The correct option is C k is any value greater than or equal to 4

Let the wealth inherited by Vijay be ‘x’ crores.
His wealth became $x^2$ because of the soft drinks company.
But the toys manufacturing company brought a loss of $kx$.
Now the wealth of Vijay will be $x^2-kx$.
This was mentioned to be equal to -4 crores

$\Rightarrow x^2-kx=-4$

$\Rightarrow x^2-kx+4=0$

For this scenario to be possible, $D\ge 0\Rightarrow k^2-16\ge 0$

$\Rightarrow k^2\ge 16$

$\Rightarrow k\ge 4\because k>0$

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