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Why is the market size after three years is 12.1 shouldn't it not be 13.31

Car rental market entry strategy
New answer on Aug 24, 2020
2 Answers
1.7 k Views
Mat asked on Aug 24, 2020

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Sidi
Expert
replied on Aug 24, 2020
McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers

Hi Mat,

Yes. 12.1m € should the market size after 2 years. This is an error in the solution.

Cheers, Sidi

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Mat on Aug 24, 2020

Thanks Sidi

Anonymous A on Sep 07, 2020

I think that you should calculate growth from year 2 only, year 1 is 10M, year 2 is 11M, year 3 is 12,1M

Ian
Expert
Content Creator
replied on Aug 24, 2020
#1 BCG coach | MBB | Tier 2 | Digital, Tech, Platinion | 100% personal success rate (8/8) | 95% candidate success rate

Hi,

You appear to be correct.

12.1 is if the growth is compounded after just 2 years, whereas the case asks for the market size after 3 years (i.e. 13.31)

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Sidi gave the best answer

Sidi

McKinsey Senior EM & BCG Consultant | Interviewer at McK & BCG for 7 years | Coached 350+ candidates secure MBB offers
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