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kevincan
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grepro
For AP

Tn = a + (n-1)*d
T18 = 800,000 = 50,000 + (18-1) * d
=> d = 750,000/17

For GP

Tn = a * r ^ (n-1)
T18 = 800,000 = 50,000 * r ^ (18-1)
=> r^17 = 16 => r = 16 ^ 1/17

Now calculating the 9th term for the AP and GP

For AP

T9 = a*r^8 = 50,000 * 16 ^ (8/17) ~ 50,000 * 16^(1/2) = 200,000

For GP

T9 = a + 8d = 50,000+8*(750,000/17)~ 50,000 + (750,000/2) = 420,000

The difference between to T9s

= 420,000 - 200,000 = 220,000

Hence the closest answer is 225,000.


I assume you are saying that T1 is the value now, at the beginning of the first year. Then T19=800,000

so r^18=16=4^2 and r^9=4
d=750,000/18 and 9d=375,000
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I thought that Geometric Progression is out of scope of GMAt. Am I wrong? Should I put it back on my "cheat-sheet"?
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The total terms are 19 not 18.

Using this I got 10th term (i.e after 9 years) of AP = 375,000

The 10th term for GP is = 200,000

Difference = 275,000

So answer should be E.



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