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Calculation technique
To start with consider the below problem which requires you to find out the value of CD and DVD sales retrospectively. If you think that you know how to tackle problems of reverse percentages then set your timer for 60 seconds and see whether you can answer the question correctly. However, if this concept seems to be overcomplicated then follow the steps below and learn how to deal with these kinds of questions.
If DVD sales increase at the rate of 5% per annum while CD sales increase at the rate of 10% per annum approximately what was the total value of CD and DVD sales two years ago in US Dollars? Note that the theoretical method to calculate the value of DVD sales could be written as follows DVD sales $8,000 / (1 + 0.05) squared by 2 = $7,256.23. The same can be applied to CD sales $6,000 / (1 + 0.10) squared by 2 = $4,958.67. If you need further explanation of such workings then examine reverse relative increase and decrease to study how to infer such formulas. Note that you may use these formulas for calculation breakdown to gain deeper and profound understanding as how such calculations work, however, in your occupational numeracy tests we recommend that you make the calculation of the above quicker and that you mentally add 0.05 and 0.10 to 1 and 1 respectively. This will make your computations faster and more efficient. Review the following which demonstrates how to calculate the above problem fast in your numerical reasoning assessment.
Quick Tips
Simply, for this kind of reverse percentages divide $8,000 by 1.05 (2 times) and $6,000 by 1.1 (2 times) which will give you $7,256.23 and $4,958.67 respectively; then add these two values together to get the final answer. Alternatively, you may input into your calculator 8,000 / 1.05 squared by 2 and you will get $7,256.23. The same would apply for CD sales. That is, input into your calculator 6,000 / 1.1 squared by 2 to get $4,958.67; then add these together to get the answer. Remember; always try to make use of memory on your calculator. Once you get result for DVD sales put $7,256.23 into memory of your device and then after you work out CD sales add DVD to CD sales by recalling $7,256.23 from memory and total these together. If you experience difficulties or you dont know how to make use of memory then read how to make most of your calculator in numerical reasoning tests.
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