Percentage Practice Test 5 with solutions

Question : 26 of 40

Marks: +1, -0

The annual production in a cement industry is subjected to business cycles. The production increases for two consecutive years consistently by 18% and decreases by 12% in the third year. Again in the next two years, it increases by 18% each year and decreases by 12% in the third year. Taking 2008 as the base year, what will be the approximate effect on cement production in 2012?

24% increase
37% decrease
45% increase
60% decrease

Validate

Solution:

Let the production in 2007 = 100
The product increases for two consecutive years by 18%.
In 2008 - 2009, the production increased by 18%

=100+({100×18}/100)

=100+18=118

In 2009 - 2010 production increased 18%

=118+({118×18}/100)=139.24

In 2010 - 2011, the production decreased by 12%

=139.24-({139.24×12}/100)

= 122.53
In 2011 - 2011, the production increased by 18%

=122.53+({122.53×18}/100)=144.58

Approximate effect on cement production in 2012

= 44.58/100×100 =44.58%

= 45% increase

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