Company T's business model predicted the company's revenue for the years 2001 through 2006, based on the company's revenue for the year 2000. For each of the years 2001 through 2006, the predicted revenue was 10% more than the predicted revenue for the preceding year. What was the first year for which the predicted revenue was more than $16,000,000? (1) The predicted revenue for 2001 was $11,000,000. (2) The predicted revenue for 2004 was $4,641,000 more than the revenue for 2000.
Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
The first statement provides the initial revenue for 2001, allowing us to calculate subsequent years' revenues based on a consistent 10% increase. In contrast, the second statement lacks the necessary initial revenue figure to determine the revenue for the years in question.
Statement (1) indicates that the predicted revenue for 2001 is $11,000,000. From this, we can calculate the revenues for the following years, applying the 10% increase successively until we exceed $16,000,000. This calculation shows that by 2005, the predicted revenue surpasses $16,000,000, making statement (1) sufficient.
Statement (2) claims that the predicted revenue for 2004 is $4,641,000 more than the revenue for 2000. However, without knowing the revenue for 2000, we cannot infer the actual revenue for 2004 or any subsequent years. Hence, statement (2) is insufficient on its own.
While combining both statements might provide additional information, statement (1) alone is sufficient to determine the first year the revenue exceeds $16,000,000. Therefore, this option is incorrect, as statement (1) stands alone.
This option is false as statement (2) does not provide enough information to determine the revenue for the required years, while statement (1) does.
This option is incorrect because statement (1) alone is sufficient to find the answer, rendering the combination unnecessary.
In this scenario, statement (1) gives a clear starting point for revenue calculations, enabling us to determine the first year that revenue exceeds $16,000,000. Statement (2) lacks the essential initial revenue data, making it insufficient for solving the problem on its own. Thus, the analysis confirms that statement (1) is the key to resolving the question.
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