Company K's Earnings - Challenge question

[aat0995]

Company K's earnings were $12 million last year. If this year's earnings were projected to be 150 percent greater than last year's earnings, what are company k's projected earnings this year?

a. $13.5 mil
b. $15 mil
c. $18 mil
d. $27 mil
e. $30 mil


e. Please explain your answer! Thanks

[vivek.kapoor83]

earnings are 12 million
50% = 6 million

and 100 % = 12 miilion
So,
if earning is 100% greater , then total earning = 12 +12 = 24 million
adding 50% to make it 150% , total - 30 million.E

Note : Remember, here it is not saying..earning would be 150% of previous yr. it says it would be 150% greater.SO, u hv to add previous yr 12 million also

[aat0995]

Thanks! But I am still a little bit confused as to when to add $12 + $18 and when not to add.

150% => (150*12)/100. And that's how we do a lot of % questions right? Imagine if this was a vic.

Did word "greater than" make this difference?

[aat0995]

Thanks! Got it.

[Scott@TargetTestPrep]

Company K's earnings were $12 million last year. If this year's earnings were projected to be 150 percent greater than last year's earnings, what are company k's projected earnings this year?

a. $13.5 mil
b. $15 mil
c. $18 mil
d. $27 mil
e. $30 mil

Since this year's earnings are projected to be 150% greater than last year's earnings of 12 million, this year's earnings are projected to be 2.5(12) = 30 million dollars.

Answer: E