Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › A very dumb question
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- November 21, 2014 at 1:59 am #211776
apologies in advance for the question below:
fuel costs: 80.
there is an increase of 120%. what is the answer?
80 x 1.2 = 96 – this is the right answer in the text
but this is the same if raise by 20%:
80 + 80x.2= 80 + 16 = 96.
so whats the difference between 120% and 20%?
—————————————————————i did: 80 + (80 x 120)/100= 80 + 96=176
pls explain
November 21, 2014 at 3:21 am #2117801) “80 x 1.2 = 96”
When you take 120% (or 1.2), it includes the original amount plus the “increase” or change. 100% is for the original amount and 20% above it is the “increase”.
The answer to the calculation will include initial/original amount as well as the “increase” and you will not have to add 80 separately.2) “80 + (80×0.2) = 80 + 16 = 96”
On the other hand, when you take only 20% (or 0.2), it is just the “increase” or change.
That is why you have to add the original amount (the first 80 in “80 + (80×0.2)”) to the calculation separately.I am not an expert at explaining things, but hope that helped.
Oh, and your calculation is not correct, “120/100” is the same as “1.2” or “120%”
You can not take 120% and add 80 as well.
Either
1) multiply by 120% and don’t add 80; or
2) multiply by 20% and add 80.November 21, 2014 at 12:50 pm #211890Eliza is not quite correct.
Check the wording in a question very carefully.
If you are told that it increases BY 120% then what you wrote originally is correct.
if it 80 now, then the increase will be 96, giving a total of 176If. on the other hand, it increases TO 120%, then it becomes 120% of 80 – it becomes 96.
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