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Numerical Reasoning question

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TSR's new app is coming! Sign up here to try it first >> 17-10-2016
    • Thread Starter

    I have got an interview for a job and it requires me to take an aptitude test, so I am doing practice tests online. However I came across this question and I don't understand the answer even with the explanation given. I thought that the percentage decrease for every period would be 5% which was of course incorrect. Can anyone give me an explanation of why it is the answer given please?

    The attachment shows the question and answer.

    Attached Images

    It does explain it quite well.

    Basically 100-95 is a 5% decrease,
    95-90 is 5.3%
    90-85 is 5.6% and so on.

    What it is saying is the the decrease may the the same year on year, but the % of it's current value it is dropping by is larger.

    Although the question is totally unclear on whether the decrease should be measured in relative or absolute. And is therefore a really poor question.
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