Question
Download Solution PDFYear | Subscriptions sold |
2012 | 5,600 |
2013 | 5,880 |
The manager of an online news service received the report above on the number of subscriptions sold by the service. The manager estimated that the percent increase from 2012 to 2013 would be double the percent increase from 2013 to 2014. How many subscriptions did the manager expect would be sold in 2014?
- 6,020
- 6,027
- 6,440
- 6,468
Answer (Detailed Solution Below)
Option 2 : 6,027
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Detailed Solution
Download Solution PDFChoice B is correct. The percent increase from 2012 to 2013 was \(\frac{5,880-5,600}{5,600}=0.05\), or 5%. Since the percent increase from 2012 to 2013 was estimated to be double the percent increase from 2013 to 2014, the percent increase from 2013 to 2014 was expected to be 2.5%.
Therefore, the number of subscriptions sold in 2014 is expected to be the number of subscriptions sold in 2013 multiplied by (1 + 0.025), or 5,880 (1.025) = 6,027.
Choice A is incorrect and is the result of adding half of the value of the increase from 2012 to 2013 to the 2013 result. Choice C is incorrect and is the result adding twice the value of the increase from 2012 to 2013 to the 2013 result. Choice D is incorrect and is the result of interpreting the percent increase from 2013 to 2014 as double the percent increase from 2012 to 2013.
Therefore, the number of subscriptions sold in 2014 is expected to be the number of subscriptions sold in 2013 multiplied by (1 + 0.025), or 5,880 (1.025) = 6,027.
Choice A is incorrect and is the result of adding half of the value of the increase from 2012 to 2013 to the 2013 result. Choice C is incorrect and is the result adding twice the value of the increase from 2012 to 2013 to the 2013 result. Choice D is incorrect and is the result of interpreting the percent increase from 2013 to 2014 as double the percent increase from 2012 to 2013.
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