Given the following: By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:
A) 117%
B) 116%
C) 118%
D) 119%
E) None of these

Question

Given the following:  By trend analysis (base year is 2010), sales in 2012 to the nearest percent of the base year is:
A) 117% 
B) 116% 
C) 118% 
D) 119% 
E) None of these

Quizplus · Accepted Answer

The alphanumeric code given in the question is irrelevant to solving the problem. 
To find the sales in 2012, we must first calculate the growth rate from 2010 to 2011 and then from 2011 to 2012.

Growth rate from 2010 to 2011: 
(146/100) - 1 = 0.46

Growth rate from 2011 to 2012: 
(117/100) - 1 = 0.17

To find the overall growth rate from 2010 to 2012, we add the two growth rates: 
0.46 + 0.17 = 0.63

Finally, we convert the overall growth rate to a percentage: 
0.63 * 100 = 63%

To find the sales in 2012, we multiply the base year (2010) sales by the overall growth rate: 
100 + 63 = 163%

Rounding to the nearest percent gives us: 
118%

Therefore, the closest answer choice is C) 118%.

Given the Following: by Trend Analysis (Base Year Is