Any unresolved numerical question


#1

Hi guys, I’ve been practicing tests online and sometimes I can’t find the right answer to a question or don’t know how they got to the conclusion or basically need a shortcut. I was thinking if there were more ppl like me and need help explaining then we could help each other out :slight_smile:

There’s this one that I managed to solve but my method was quite lengthy - is there a faster way to solve this or am I doomed each time I get this in a test?

This one is from SHL

XYZ Company purchased a new machine in March at $50K and is using the profits to pay it off. Profits in March were $7876. If the profits increase 2% from the previous month, in what month will the machine be completely paid off?
A: June
B: July
C: August
D: September
E: October

So here are my 2 methods:

  1. short but relies on estimation therefore not entirely reliable. $50K / $7876 = 6.34. Without increase they’ll have collected $47,256 in August, missing $2,744 to hit the $50K. 2% increase each month is appx. $157 each month which isn’t high enough to make the target therefore they need another month --> answer is September.

  2. Basically hit 7876 + (7876 x 1.02) + (7876 x 1.02^2) …etc. till I hit $50K

There must be a faster & more reliable method than this surely???

Appreciate any help! :slight_smile: