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Question 2 • 26-27 RPA Financial Math - MA2007 IC

Footware manufacturing is projected to decrease output by 8.4% from 2006 to 2016. If footware manufacturing had 1.8 billion dollars of output in 2006, approximately how much output is expected in 2016?

Answer
A
$1.95 billion
B
$2.64 billion
C
$1.55 billion
D
$1.65 billion

Explanation

An 8.4% decrease leaves 100% − 8.4% = 91.6% of the 2006 output. Calculate $1.8 billion × 0.916 = $1.6488 billion, which is approximately $1.65 billion, choice d.

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