Question

The runaway success of the switch prompted the company to raise it's sales and earnings by forecast for the second time since November. It now expects a 24% jump in profit from what it projects just three months ago, with 560 billion yen (5.6 billion) estimated for the year ending in March. What is the total now?

Answer 1

If the new forecast is 24% more than the 5.6 billion estimated, we can calculate this as:

$\begin{gathered} Y_{\text{new}}=Y_{\text{old}}+0.24\cdot Y_{\text{old}}=(1+0.24)Y_{\text{old}}=1.24\cdot Y_{\text{old}} \\ Y_{\text{new}}=1.24\cdot5.6=6.944\approx6.9 \end{gathered}$

Answer: The total now is approximately 6.9 billion.