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The production of AB Co. increased by 10% after one year, and in the next year it increased by 22%. In the third year, it
increased by 5%. What overall change (in %) has been there in the production in three years from the original production?
41.5%
40.9%
41.2%
42.8%
- First year: production increased by 10%. The new production value is 110% of the original.
- Second year: there was a 22% increase. Hence, production became 110% * 1.22 = 134.2% of the original.
- Third year: production increased by 5%. Therefore, production is now 134.2% * 1.05 = 140.91% of the original.
The overall change in production over three years is 40.91%.
- Option 1: 41.5% is close but rounded off.
- Option 2: 40.9% is the closest and most accurate.
- Option 3: 41.2% is slightly incorrect.
- Option 4: 42.8% is more than actual.
The correct option is: Option 2 - 40.9%
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