📊 GMAT Exam Prep

Based on the line graph showing Company A's annual revenue (in millions of dollars) from Year 1 to Year 5, which of the following best approximates the average annual percentage increase in revenue during this period? Year 1: $10M Year 2: $12M Year 3: $14M Year 4: $17M Year 5: $20M

A 15%
B 20%
C 25%
D 30%

✓ Correct Answer: Option C

The total percentage increase from Year 1 to Year 5 is (($20M - $10M) / $10M) * 100% = 100%. This increase occurred over 4 years (Year 1 to Year 5). The average annual percentage increase is 100% / 4 = 25%.

💡 Why is C) the correct answer?

The correct answer to the question "Based on the line graph showing Company A's annual revenue (in millions of dollars) from Year 1 to Year 5, which of the following best approximates the average annual percentage increase in revenue during this period? Year 1: $10M Year 2: $12M Year 3: $14M Year 4: $17M Year 5: $20M" is Option C: 25%.

The other options — A) 15%, B) 20%, D) 30% — are incorrect for this GMAT Exam Prep question. As explained above: The total percentage increase from Year 1 to Year 5 is (($20M - $10M) / $10M) * 100% = 100%. This increase occurred over 4 years (Year 1 to Year 5). The average annual percentage increase is 100% / 4…

📚 About This GMAT Exam Prep Practice Question

This 2-level GMAT Exam Prep question from the Data Insights topic is part of BrainForge Quiz's free exam preparation library. Each question includes the correct answer and a detailed explanation to help you understand the underlying concept, not just memorize the answer.

How to use this page: Read the question above, consider all four options (A through D), then check the highlighted correct answer and explanation. For active timed practice, start a free GMAT Exam Prep practice test or use flashcards for spaced repetition review.

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