Video: SAT Practice Test 1 • Section 4 • Question 16

The table shows the revenue of four companies in the months of April and August in million dollars. How many companies saw an increase in revenue of 7% or less over the two months?

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Video Transcript

The table shows the revenue of four companies in the months of April and August in million dollars. How many companies saw an increase in revenue of seven percent or less over the two months? Company A’s revenue increased from 18.3 million dollars to 20.1 million dollar. Company B increased from 33.4 to 36.2 million dollars, Company C from 45.6 to 47.4 million dollars, and Company D 24.8 to 31.3 million dollars.

The percentage increase of each of the companies can be calculated by dividing the actual difference or change in revenue by the initial value or initial revenue and then multiplying by 100. For company A, the actual increase in revenue can be calculated by subtracting 18.3 from 20.1. We divide this answer by 18.3, the revenue in April, and then multiply the answer by 100. This is equal to 9.836 and so on.

As the second number after the decimal point is less than five, we can round down. This means that company A had an increase of 9.8 percent to one decimal place. For company B, we need to subtract 33.4 from 36.2. We divide this by 33.4 and multiply the answer by 100. This is equal to 8.383 and so on. The second number after the decimal point here is greater than five. Therefore, we can round up. Company B has seen an increase in revenue of 8.4 percent to one decimal place.

For company C, we subtract 45.6 from 47.4, divide this answer by 45.6, and multiply by 100. This is equal to 3.947. The second digit after the decimal point is less than five. Therefore, we round down. Company C has seen an increase of 3.9 percent to one decimal place.

Finally, for company D, we subtract 24.8 from 31.3, divide by 24.8, and then multiply by 100. This is equal to 26.209 and so on. Once again here, we will round down as the zero is less than five. Company D had an increase of 26.2 percent to one decimal place.

We were asked to work out how many companies saw an increase of seven percent or less. The only one of these four answers that is less than seven percent is 3.9 percent. We can, therefore, conclude that only one company, Company C, saw an increase of seven percent or less from April to August. Companies A, B, and D all saw an increase of greater than seven percent.

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