Que: A shipping company consists of 40 ‘type A’ ships at the beginning of 2010. At the end of each year.............

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Que: A shipping company consists of 40 ‘type A’ ships at the beginning of 2010. At the end of each year, starting with 2010, the company retired 5 of the ‘type A’ ships and acquired 8 new ‘type B’ ships. How many years did it take before the number of ‘type A’ planes left in the company was less than 40 percent of the ships?

(A) 2
(B) 3
(C) 4
(D) 5
(E) 6
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Solution: 40 percent of ships:\(\frac{40}{100}\cdot40=16\).

In 2010, Type A ship = 40
Type B ship = 0

In 2011, Type A ship = 40 – 5 = 35
Type B ship = 8

In 2012, Type A ship = 35 – 5 = 30
Type B ship = 8 + 8 = 16

In 2013, Type A ship = 30 – 5 = 25
Type B ship = 24

Therefore, in 4 years, ‘type A’ ship = 25 – 5 = 20 which is 40 percent less than of total ships.

Since Type B ship = 24 + 8 = 32 and \(\frac{20}{20+32}=\frac{20}{52}\) = 38.46% < 40%.

Therefore, C is the correct answer.

Answer C