M22-31

Question

If a company's sales rose by 10% from 2000 to 2001 and then returned to the 2000 level in 2002, what was the approximate percentage decrease in sales from 2001 to 2002?

A. 9.1%
B. 9.5%
C. 10.0%
D. 10.4%
E. 11.0%

Bunuel · Answer

Official Solution:

If a company's sales rose by 10% from 2000 to 2001 and then returned to the 2000 level in 2002, what was the approximate percentage decrease in sales from 2001 to 2002?

A. 9.1%
B. 9.5%
C. 10.0%
D. 10.4%
E. 11.0%

Let  x  represent the sales in 2000 and consequently in 2002. The sales for 2001 would then be  1.1x .
 
The percentage decrease from 2001 to 2002 is calculated as  \frac{1.1x - x}{1.1x} * 100\% = \frac{1}{11}*100\% \approx 9.1\% .

Answer: A

positiveinteger · Answer

Hello Bunel,

can you please explain how did you build the percent decrease ?

Thank you

Bunuel · Answer

General formula for percent increase or decrease, (percent change):  percent=\frac{Change}{Original}*100 .

NaijaBoy234 · Answer

I used smart numbers for this problem. 
If the sales in 2000 was 100 then sales in 2001 will be 110 (10% increase). 
Sales in 2002 fell back to 2000 level so we are back to 100. Change from 2001 to 2002 is 10.
% change is 10/110 = 1/11 which is approximately 9.1%

Bunuel · Answer

I've revised the question and solution, incorporating additional details for improved clarity. I trust this makes it more comprehensible.

M22-31

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