Assignment 5

Consumer debt has soared 39% in the last five years and is now $1.3 trillion. What was consumer debt five years ago?

What a lot of you did…1.3trillion – (.39*1.3trillion) = $ 0.793trillion

Three things:

1. First you can check your answer:

Change %Value Reference

Value Reference - Value New

%3.69693.793.

793.3.1

2. You can’t decrease some value in substitute for an increase in reverse:

Example:If I have 10 apples and they increase by 50% I

then have 15 apples. If I have 15 apples and they decrease by 50% I

then have 7.5 apples.

Consumer debt has soared 39% in the last five years and is now $1.3 trillion. What was consumer debt five years ago?

3. What’s happening in the problem?

Change %Value Reference

Value Reference - Value New

New Value = $1.3trillionReference Value = ?% change = 39% = .39

Change %Value Reference

Value Reference - Value New

39.3.1

x

x xx 39.3.1 x39.13.1

n935trillio.0$x

Check it:

39.935.

935.3.1

3. There were 100 cellular telecommunications employees in the year 2000. The number of cellular telecommunications employees increased 10.4% from 2000 to 2001 and decreased 5.5% from 2001 to 2002. What was the overall percent change in the number of employees from 2000 to 2002? How many cellular telecommunications employees were there in 2002?

Many of you did…

100 + (100*.104) = 110.4 in 2001110.4 – (110.4*.055) = 104 employees in 2002Percent Change:

%404.100

100104

Few of you did…

(1 ± P1)*(1 ± P2) – 1 = % Change

(1 + .104)*(1 - .055) – 1 = .0433 = 4.33%How many employees?

04.100

100

x

Change %Value Reference

Value Reference - Value New

4100 x 104x