percentage question!!

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pirrum: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Wed Jan 09, 2013 12:29 pm

percentage question!!

by pirrum » Thu Jan 10, 2013 7:23 am

Net Sales: IPG Net Sales.

1995: 1,600
1996: 2,158
1997: 2,568
1998: 2,375
1999: 2,508
2000: 2,709

Q. The average annual growth rate in Net Sales for the industry from 1995 onwards was 10%. By how many EUR did the Net Sales of IPG exceed the industry average by 1997?

A: 640m
B: 648m
C: 656m
D: 664m
E: None of These

**Sorry I am new to this site. Any help would be greatly appreciated. Thanks**

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Source: Beat The GMAT — Problem Solving | Thu Jan 10, 2013 7:23 am

pirrum: Junior | Next Rank: 30 Posts; Posts: 15; Joined: Wed Jan 09, 2013 12:29 pm

by pirrum » Thu Jan 10, 2013 7:55 am

anyone??

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GMAT/MBA Expert

Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pm; Location: Vancouver, BC; Thanked: 5254 times; Followed by:1268 members; GMAT Score:770

by Brent@GMATPrepNow » Thu Jan 10, 2013 8:21 am

pirrum wrote:Net Sales: IPG Net Sales

1995: 1,600
1996: 2,158
1997: 2,568
1998: 2,375
1999: 2,508
2000: 2,709

Q. The average annual growth rate in Net Sales for the industry from 1995 onwards was 10%. By how many EUR did the Net Sales of IPG exceed the industry average by 1997?

A: 640m
B: 648m
C: 656m
D: 664m
E: None of These

Note: Presumably, the top table indicates sales in millions of Euro, and in the answer choices, the "m" represents millions of Euro.

Here's how IPG's sales would have been if their growth rate were 10%.
1995: 1600
1996: 1600 + (10% of 1600) = 1600 + 160 = 1760
1997: 1760 + (10% of 1760) = 1760 + 176 = 1,936

So, with 10% growth, IPG's sales in 1997 would have been 1,936
Instead, their sales in 1997 were 2,568

2,568 - 1,936 = 632
So, IPG's sales exceeded the industry average by 632 (million Euro)

Answer = E

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com