I recently attended math test for consulting job in PwC. There were two questions I was unsure of.
- Mike bought a Lamborgini for 100 $ in year 1966. The value of his Lamborghini at the end of year 1996 is 23,600$. At what rate did the value of Lambo increase per year?
We had to circle on of the solutions such as a) 10% b) 15% and so on.. How would you know the answer to this question?
- Mike also had the option of investing in a fund that grew 25% per year in the same timeframe. How much more would he earn through this investment than by buying a Lambo?
I know that here we have to calculate growth of 25% for 30 years, but how should I do it?