Question

Answer the following questions based on the information given below:

The bar chart below shows the revenue received, in million U.S.Dollars (USD), from subscribes to a particular Internet service. The data covers the period 2003 to 2007 for the United States(US) and Europe. The bar chart also shows the estimated revenues from subscription to the period 2008 to 2010.

The difference between the estimated subscription in Europe in 2008 and what it would have been if it were computed using the percentage growth rate of 2007 (over 2006), is closest to:

• A. 50
• B. 80
• C. 20
• D. 10

Answer 1

The correct option is A 50

Estimated subscription in Europe for 2008 (in million US dollars) = 600.
Percentage growth rate for subscription in Europe for 2007 over 2006
= $\frac{500-380}{380}=\frac{6}{19}$
Subscription in Europe for 2008 computation as per 2007 (over 2006)
$=500(1+\frac{6}{19})\approx 650$
Approximate difference in these two values = 650 - 600 = 50