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