 # How is this defined on the SHL test

#1

So a major part of the problem I have on the SHL numerical is that I simply get confused when something is written like

Last year, the value of the High Yield Equities holding was 10% less than what it is now. What was the value of the High Yield Equities holding last year?

Or

If the number of cars that are greater than 6 years old has grown by 30% between 1994 and 2001, how many cars were less than 6 years old in 1994.

Can someone let me know how I can tell when the wording wants me to multiply the original number by 1.3?

Another example is “If the euro fell in value by 11%, how many euros could you buy for 1500 Ringit?”

Why is it in this case this sentence still means take the original value of the euro and multiply it by .89 instead of take the original value and divide it by 1.11?

#2

For the first one you need to multiply by 0.9 - i.e. work out 90% of the current value.

The reason being is that you want 90% of the current value, i.e. 10% less.

For the second one you need to divide by 1.3 to get to the number that was greater than 6 years old back in 1994, and then subtract to get the final value.

The reason being is that a growth of 30% requires you to multiply by 1.3, we want to reverse that growth, so divide by 1.3.

In the last case, we want to divide by 0.89 because we want a fall by 11%, as opposed to reverting a growth of 11%.

This might make it clearer:

Take 10 sweets. My number of sweets grows by 50%. Now I have 15 sweets. If I was to now reduce it by 50%, I would end up with 7.5 sweets, not 10 sweets like I had before.

Does that make any sense?

#3

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