In 1994, Company X recorded profits that were 10% greater than in 1993, and in 1993 the company's profits were 20% greater than they were in 1992. What were the company's profits in 1992?
(1) In 1994, the company's profits were $100,000 greater than in 1993.
(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.
OA is A but can someone please explain statement 2? Please look at my rephrasing of the target question because that's how i prefer to set up questions like this
I did it like this..
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1992 1993 1994
p p(1+20/100) p(1+20/100)(1+10/100)
(1) In 1994, the company's profits were $100,000 greater than in 1993.
(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.
OA is A but can someone please explain statement 2? Please look at my rephrasing of the target question because that's how i prefer to set up questions like this
I did it like this..
..
..
..
1992 1993 1994
p p(1+20/100) p(1+20/100)(1+10/100)
