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This question involves using a calculator efectively & efficiently.

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This chart shows the annual profit made by two teams within a company over 5 years.

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On the basis of the Year 5 profits, a forecast is made for Year 6. It is predicted that Team 1 will increase their profits by 4% while Team 2’s profits will decrease by 4%.

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What will be the forecast for the percentage increase in total profits?

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This is quite a complicated calculation, and it is good practice to know how your calculator works especially if you want to use the memory.

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Year 5 total profit = 45+50 = 95

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4% increase in Team 1’s profits = 1.04 x 45 = 46.8

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4% decrease in Team 2’s profits = 0.96 x 50 = 48

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Predicted profit for Year 6 = 46.8 + 48 = 94.8

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Percentage change = (New - Old)/Old  X 100%

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= (94.8 - 95)/95  X 100%

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= -0.21%

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