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

dalmatian

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?

Aaron1402

Hi,

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

£212160/102 x100 = £208000

£20800x0.95 = £197600

dalmatian

Thanks, Aaron!