If the year 2016 were to show the same growth in terms of total sales revenue…
2017
If the year 2016 were to show the same growth in terms of total sales revenue as the year 2015 over the year 2014, then the revenue in the year 2016 must be approximately :
Answer: D. ₹ 177 lakh — Concept — A percentage growth always measures an increase against the base it grew from: growth % = (new value − base value) ÷ base value × 100. To carry that…
- A.
₹ 194 lakh
- B.
₹ 187 lakh
- C.
₹ 172 lakh
- D.
₹ 177 lakh
Show answer & explanation
Correct answer: D
Concept — A percentage growth always measures an increase against the base it grew from: growth % = (new value − base value) ÷ base value × 100. To carry that same growth rate forward by one more year, the latest value is multiplied by the same factor, so the next value = latest value × (1 + growth), which is the same as latest value × (latest value ÷ previous value).
Application — Here the quantity is total sales revenue, so each year's column must first be added down to a single total, and the growth is taken between the 2014 and 2015 totals.
Year | Journals | Magazines | Books | Total |
|---|---|---|---|---|
2012 | 46 | 31 | 73 | 150 |
2013 | 47 | 39 | 77 | 163 |
2014 | 45 | 46 | 78 | 169 |
2015 | 44 | 51 | 78 | 173 |
Total sales revenue in 2014 = 45 + 46 + 78 = ₹169 lakh.
Total sales revenue in 2015 = 44 + 51 + 78 = ₹173 lakh.
Growth of 2015 over 2014 = (173 − 169) ÷ 169 = 4 ÷ 169 ≈ 0.0237, that is about 2.37%.
Applying the same growth rate to the 2015 figure: revenue in 2016 = 173 × (1 + 0.0237) = 173 × 173 ÷ 169.
173 × 173 = 29929, and 29929 ÷ 169 ≈ 177.09.
So the total sales revenue in 2016 must be approximately ₹177 lakh.
Cross-check — Taking 2.37% of 173 gives about 4.1, and 173 + 4.1 ≈ 177.1, which matches the figure obtained above. Because the base moves only from 169 to 173, repeating the same absolute rise of ₹4 lakh also gives 173 + 4 = ₹177 lakh, so both readings of "the same growth" agree in this table.
Contrast — The larger figures follow from choosing the wrong pair of years: the rise from 2012 (₹150 lakh) to 2013 (₹163 lakh) is 13 ÷ 150 ≈ 8.7%, which would project about ₹188 lakh, and the rise from 2012 to 2014 (₹169 lakh) is 19 ÷ 150 ≈ 12.7%, which would project about ₹195 lakh. The question fixes the pair as 2015 over 2014, so only the 4 ÷ 169 rate may be carried forward.