Question #295875

 

The net revenue of a company rose 3.6 %, while inflation rate was 3.0 %. Calculate the relative real change in revenue as percentage.

 


1
Expert's answer
2022-02-14T18:04:29-0500

Let revenue of a particular year is x' x '

then revenue of next year will be

x+3.6% of x=x+0.036x=1.036x\begin{aligned} & x+3.6 \% \text { of } x=x+0.036 x \\ =& 1.036 x \end{aligned}

now, Inflation 3%

So,

=1.036x1.036x×3%=1.036x0.03108x=1.00492x\begin{aligned} &=1.036 x-1.036 x \times 3 \% \\ &=1.036 x-0.03108 x \\ &=1.00492 x \end{aligned}

Revenue of particular year was xx after one year value of revenue is 1.00492x1.00492 x .

So, change %=1.00492xxx×100%=0.492%\%=\frac{1.00492 x-x}{x} \times 100 \%=0.492 \%

Relative real change in revenue =0.492%=0.492 \%

 


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