Operational Risk: Growth Above 20%, Calculating the growth
Hello,
I'm practicing a problem where the data is:
Premiums
| 2018 | 2017 | |
|---|---|---|
| DWP | 51,000 | 34,000 |
| AWP | 19,200 | 12,500 |
Step 1: Calculate Growth
Growth = 51,000 / 34,000 − 1 = 50%
Step 2: Growth Above 20% (My Method, I gathered from base problems)
(51,000 + 19,200) × (50% − 20%) / (1 + 50%) = 14,040
Alternative Calculation (Source Method)
(51,000 + 19,200) − (34,000 + 12,500) × 1.2 = 14,400
Question
Which method is correct, and what is wrong with my formula?