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# A particular parking garage is increasing its rates by 15 pe

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Director
Joined: 25 Oct 2008
Posts: 611
Location: Kolkata,India
Followers: 9

Kudos [?]: 177 [0], given: 100

A particular parking garage is increasing its rates by 15 pe [#permalink]  30 Oct 2009, 14:24
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Difficulty:

65% (hard)

Question Stats:

55% (02:50) correct 45% (01:52) wrong based on 92 sessions
A particular parking garage is increasing its rates by 15 percent per month. Bob decides to reduce the number of days he uses the garage per month so that the amount he spends at the garage per month remains unchanged. Which of the following is closest to Bob’s percentage reduction in the number of days he uses the garage each month?

A. 10%
B. 11%
C. 12%
D. 13%
E. 14%
[Reveal] Spoiler: OA

_________________
Senior Manager
Affiliations: PMP
Joined: 13 Oct 2009
Posts: 313
Followers: 3

Kudos [?]: 99 [1] , given: 37

Re: parking garage [#permalink]  30 Oct 2009, 14:52
1
KUDOS

let m be the rate per month , then 1.15m is the rate per month after increase

let d be the number of days he used garage, then total cost assuming 30 days in month = md/30

let n be days to be reduced to remain at same cost, so we get

we need to find n*100/d

md/30 = 1.15m (d-n)/30

==>

d = 1.15(d-n)

divide both sides by d ==>
1 = 1.15 - 1.15n/d
==>1.15n/d = .15
==>100n/d = 15/1.15 = 13
_________________

Thanks, Sri
-------------------------------
keep uppp...ing the tempo...

Press +1 Kudos, if you think my post gave u a tiny tip

Intern
Affiliations: University of Florida Alumni
Joined: 25 Oct 2009
Posts: 36
Schools: Wharton, Booth, Stanford, HBS
Followers: 0

Kudos [?]: 14 [0], given: 11

Re: parking garage [#permalink]  30 Oct 2009, 15:48
Assuming Current Cost of $1, next month it will cost$1.15 for same services

X * 1.15 = $1 with X being the percentage of full previous services X = 86.956% so you must use roughly 13% less at the higher rate to keep your costs the same. Note if it asked you in Month 3 or X amount of decrease, you would just compound this rate. Ex. .86956 ^2 = Usage in Month 3 or just 1 / 1.15^2 _________________ Kudos are greatly appreciated and I'll always return the favor on one of your posts. Thanks! Senior Manager Joined: 18 Aug 2009 Posts: 333 Followers: 8 Kudos [?]: 168 [1] , given: 13 Re: parking garage [#permalink] 30 Oct 2009, 16:01 1 This post received KUDOS R*D=E 1.15R*(1-x)D=E R*D=1.15R*(1-x)D 1-\frac{1}{1.15}=x Solving, x=13% Intern Joined: 26 Oct 2009 Posts: 11 Followers: 0 Kudos [?]: 1 [1] , given: 13 Re: parking garage [#permalink] 30 Oct 2009, 20:13 1 This post received KUDOS I got 13 too, thanks sri and others for explanations Intern Joined: 10 Nov 2009 Posts: 7 Followers: 0 Kudos [?]: 0 [0], given: 7 Re: parking garage [#permalink] 17 Nov 2009, 03:19 Let parking rate = 100 =(15/100+15)*100 =13.04% Manager Status: Last few days....Have pressed the throttle Joined: 20 Jun 2010 Posts: 73 WE 1: 6 years - Consulting Followers: 3 Kudos [?]: 23 [7] , given: 27 Re: parking garage [#permalink] 13 Aug 2010, 05:45 7 This post received KUDOS Best way to solve such Questions: Remember - If Value of an item goes UP by x%, then the REDUCTION to be made to bring it to original value is calculated by formula: x*100/(100+x)% If Value of an item goes DOWN by x%, then the INCREMENT to be made to bring it to original value is calculated by formula: x*100/(100-x)% Hope this helps! _________________ Consider giving Kudos if my post helps in some way Director Joined: 29 Nov 2012 Posts: 930 Followers: 12 Kudos [?]: 285 [0], given: 543 Re: A particular parking garage is increasing its rates by 15 pe [#permalink] 13 Jun 2013, 01:02 Plugging numbers is a better approach here or algebraic? _________________ Click +1 Kudos if my post helped... Amazing Free video explanation for all Quant questions from OG 13 and much more http://www.gmatquantum.com/og13th/ GMAT Prep software What if scenarios gmat-prep-software-analysis-and-what-if-scenarios-146146.html SVP Joined: 06 Sep 2013 Posts: 1667 Location: United States Concentration: Finance GMAT 1: 710 Q48 V39 WE: Corporate Finance (Investment Banking) Followers: 13 Kudos [?]: 167 [0], given: 276 Re: parking garage [#permalink] 10 Oct 2013, 12:21 hgp2k wrote: R*D=E 1.15R*(1-x)D=E R*D=1.15R*(1-x)D 1-\frac{1}{1.15}=x Solving, x=13% This is the best approach. Always try to use 1 if possible. Makes lifes easier Manager Joined: 13 Aug 2012 Posts: 114 Followers: 0 Kudos [?]: 18 [0], given: 105 Re: A particular parking garage is increasing its rates by 15 pe [#permalink] 11 Oct 2013, 07:07 Can someone help me here? I did it by the following method but the ans is coming out to be wrong So let the original rate be 100$ and assuming that the no of days for that month is 30, The Per day rate comes out to be \frac{100}{30}=\frac{10}{3}$Now the rate increases 15 percent per month, so the the next month's rate would be 115$. The per day rate comes out to be \frac{115}{30}$. So what i did was that let the no of days in the new month that would equate to 100$ be x. The equation comes out to be
\frac{115x}{30}=100
x=\frac{3000}{115} days

The percentage change would be [30-(3000/115)]/30\approx{10%}
What am i doing wrong?
Re: A particular parking garage is increasing its rates by 15 pe   [#permalink] 11 Oct 2013, 07:07
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