Question

Annual Air Traffic (in 1,000s of millions of passengers) 0.9 0.1 0.7 1.0 5 years ago Today Europe Rest of World Asia-Pacific USA 55. The average distance flown per passenger departing within Europe 5 years ago was 1,000km. Today this figure has decreased by 20%. By how many percent has the total distance travelled by flights departing in Europe changed today? A. 30% decrease B. 15% decrease C. No change D. 120% increase E 140% increase 56. If the increase in global passenger air traffic continues at the current rate, approximately how many annual air passengers millions) will there be in 5 years time? A $5,830m B. 53,900m C. 58,300m D. 539,000m E. None of these 57. Over the last 5 years by how many passengers did the increase in European traffic exceed the increase in USA passengers? A. 40,000,000 B. 60,000,000 C. 400,000,000 D. 600,000,000 E. Cannot say

Answer 1

55]

total distance traveled 5 years ago = distance per passenger * passengers per year

total distance traveled 5 years ago = 1000 * 300 million = 300 billion

total distance traveled today = distance per passenger * passengers per year

total distance traveled today = (1000 * (1 - 20%)) * 900 million = 720 billion

% change = (720 billion - 300 billion) / 300 billion = 140%

The answer is E

56]

The traffic has increased from 2100 million to 3500 million in 5 years.

Let us say the growth rate is G. Then :

3500 million =  2100 million * (1 + G)⁵

G = (3500 million / 2100 million)^1/5 - 1

G = 10.76%

Air traffic after 5 years = Air traffic today * (1 + G)⁵

Air traffic after 5 years = 3500 million * (1 + 10.76%)⁵

Air traffic after 5 years = 5830 million

The answer is A

57]

Increase in European traffic = 900 million - 300 million = 600 million

Increase in USA traffic = 1200 million - 1000 million = 200 million

Excess of increase in European traffic over USA traffic =  600 million - 200 million = 400 million

The answer is C