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The following graphs shows the revenue (in $ million) of three companies in their initial six years of operations, in an economy which is characterized by a persistent inflation.
Question 5
What would have been Facebook’s revenue (in $ million) in its sixth year of operation if the
company had matched Google’s percentage growth in revenues from the fifth to the sixth year?
Choose the option that is nearest to the answer.
Solution
Google’s percentage growth in revenues from the fifth to the sixth year = $$\dfrac{3200-1500}{1500}\times 100$$ = 113.33 percent.
Therefore, Facebook's revenue in the 6th year = $$\dfrac{100+113.33}{100}\times 750$$ = 1600 millions.
Therefore, option A is the correct answer.
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