July 15, 2010

Quantitative Ability-Question of the Day

A company invests in a new internet server. On the first day, the server sees one hour of downtime. After this, the downtime halves every day. At the end of six months after the installation of the new server, the CEO checks how much money has been lost due to the total downtime up to that point. If every hour of downtime costs the company Rs. 30 lakh, then which of these is closest to the total amount (in Rs. lakhs) that has been lost?


1) 60
2) 90
3) 120
4) 150

Downtime on the first day was 1 hour. After this, the downtime halves everyday.So, downtime on the second day will be ½ hour, on third day, it will be ¼ hour and so on.
Since the period into consideration is very large i.e 6 months or approximately 180 days, the downtime that the server sees can be considered to be an infinite series with the common ratio as ½ hour.

Every hour of downtime costs the company Rs. 30 lakhs.
So, total loss suffered by the company = 2 × 30 = Rs. 60 lakhs
Hence, option 1.


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