I was having a look through some numeracy tests and don't follow this one. It's question 18 on the test here:
NUMERICAL REASONING TEST
(But I've pasted the answer provided below without the diagram.)
What I don't get is why they add the original price on afterwards.
I just worked out the percentage increase of Rupt bank and applied that to the 2002 share price for Pilemin. Why add the original?
18) If the proportional change in share price for Pilemin Airlines had been the same as that for Rupt Bank between 2002 and 2006 what would have been the value of Pilemin Airlines shares in 2006?
Share price for Rupt Bank 2002 = £0.45
Share price for Rupt Bank 2006 = £1.65
Change in share price for Rupt Bank 2002-06 = 1.20 / 0.45 = 266%
Price of Pilemin Airlines shares in 2002 = 1.45
Increase in price of Pilemin Airlines shares 2002 - 2006 = Price in 2002 x Change in share price for Rupt Bank
1.45 x 2.66 = £3.86
Therefore price in 2006 = original price plus increase in price = £1.45 + £3.86 increase = £5.31