Budgeting Level 4 Kaplan Revision Kit 15-16 Practice Questions Section 1, Q43

dalmatian
dalmatian Registered Posts: 37 New contributor ?
Next year energy costs are forecast at £212,160. This assumes a 2% increase in energy consumption and a 4% increase in gas and electricity tariffs.
However, energy saving measures are being proposed. Instead of increasing, consumption should be reduced by 5%.
The energy budget should be £(answer is £197,600).
Would much appreciate somebody running through the answer with me as I am unsure which calculations need to be made and how?

Comments

  • Aaron1402
    Aaron1402 Registered Posts: 2
    Hi,

    the 4% increase in gas is just in there to try and throw you off.

    £212160/102 x100 = £208000

    £20800x0.95 = £197600

  • dalmatian
    dalmatian Registered Posts: 37 New contributor ?
    Thanks, Aaron!
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