The question is from CAT Profit and Loss. CAT exam is known to test on basics rather than high funda ideas. CAT also tests multiple ideas in the same question, and 2IIMs CAT question bank provides you with CAT questions that can help you gear for CAT Exam CAT 2023. Combining simple ideas from two topics is a very interesting method to create new questio s. This question is from profit and loss combined with the topic progressions.

Question 1: A merchant can buy goods at the rate of Rs. 20 per good. The particular good is part of an overall collection and the value is linked to the number of items that are already on the market. So, the merchant sells the first good for Rs. 2, second one for Rs. 4, third for Rs. 6…and so on. If he wants to make an overall profit of at least 40%, what is the minimum number of goods he should sell?

- 24
- 18
- 27
- 32

27

Try upto 40 hours for free

Learn from the best!

Limited Seats Available - Register Now!

Let us assume he buys n goods.

Total CP = 20n

Total SP = 2 + 4 + 6 + 8 ….n terms

Total SP should be at least 40% more than total CP

2 + 4 + 6 + 8 ….n terms ≥ 1.4 * 20 n

2 (1 + 2 + 3 + ….n terms) ≥ 28n

n(n + 1) ≥ 28n

n^{2} + n ≥ 28n

n^{2} - 27n ≥ 0

n ≥ 27

The question is **" If he wants to make an overall profit of at least 40%, what is the minimum number of goods he should sell?"**

He should sell a minimum of 27 goods.

Choice C is the correct answer.

CAT 2024

Classroom Batches Starting Now! @Gopalapuram and @Anna nagar

Copyrights © All Rights Reserved by 2IIM.com - A Fermat Education Initiative.

Privacy Policy | Terms & Conditions

CAT^{®} (Common Admission Test) is a registered trademark of the Indian Institutes of Management. This website is not endorsed or approved by IIMs.

2IIM Online CAT Coaching

A Fermat Education Initiative,

58/16, Indira Gandhi Street,

Kaveri Rangan Nagar, Saligramam, Chennai 600 093

**Phone:** (91) 44 4505 8484

**Mobile:** (91) 99626 48484

**WhatsApp:** WhatsApp Now

**Email: **prep@2iim.com