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A very dumb question

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA PM Exams › A very dumb question

  • This topic has 2 replies, 3 voices, and was last updated 10 years ago by John Moffat.
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  • Author
    Posts
  • November 21, 2014 at 1:59 am #211776
    mansoor
    Participant
    • Topics: 424
    • Replies: 542
    • ☆☆☆☆

    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 #211780
    Eliza
    Participant
    • Topics: 2
    • Replies: 3
    • ☆

    1) “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 #211890
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54655
    • ☆☆☆☆☆

    Eliza 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 176

    If. on the other hand, it increases TO 120%, then it becomes 120% of 80 – it becomes 96.

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