inflation problem - numerical test

#1

can someone very very kindly please help me as i am completely blank tonight.

i am doing some numerical tests from wiki - the 3rd test question 24 re inflation. can someone please explain why the explanation of the answer is 2.6 x all those numbers? pls explain bit by bit if you can.

thanks a lot, x

#2

i meant this site, sorry
http://www.assessmentday.co.uk/aptitudetests_numerical.htm

#3

Hey pumpkin28,

Don’t stress out. Breathe. Hehe.

You have to multiply 2.6% by the changes each year to get the inflation rate in 2003.

I’ll work it out for you.

 Inflation Rate in 1998 = 2.6%

 Inflation Rate in 2003 = ?

 The graph gives you the following changes in inflation rate each year. 
 
      1999: DECREASE of 0.3%
      2000: DECREASE of 0.6%
      2001: DECREASE of 0.6%
      2002: DECREASE of 0.9%
      2003: DECREASE of 0.3%

 You need to multiply the 2.6% by the appropriate rate of changes each year to find out what it is for 2003.

      1999: (100% - 0.3%) = 99.7% or 0.977 
      2000: (100% - 0.6%) = 99.4% or 0.994
      2001: (100% - 0.6%) = 99.4% or 0.994
      2002: (100% - 0.9%) = 99.1% or 0.991
      2003: (100% - 0.3%) = 99.7% or 0.997

 To find the answer multiply 2.6% by each of the rate of changes seen each year.

      Inflation Rate in 2003 = 2.6% x (0.997) x (0.994) x (0.994) x (0.994) x (0.991) x (0.997)

      Inflation Rate in 2003 = 2.5305521828%

      Inflation Rate in 2003 = 2.5% (Approximate when rounding)

Hope this helps you out!

Cheers,

messierchippy

#4

Hi pumpkin28:

I concur with messierchippy’s algorithm. Answer is correct.

DT

#5

thank you guys you have been so helpful. i forgot how to breathe actually lol

but i still cannot understand part 2. so, 2.6 is multiplied by every answer from part 1?

#6

oh oh…having blonde moment. ok got it.

so literally 2.6 x all the results…aha!!

my god, you guys are smart :slight_smile: