Company K's earnings were $12 million last year. If this year's earnin

Question

Company K's earnings were $12 million last year. If this year's earnings are projected to be 150 percent greater than last year's earnings, what are Company K's projected earnings this year?

(A) $13.5 million
(B) $15 million
(C) $18 million
(D) $27 million
(E) $30 million

Bunuel · Accepted Answer

SOLUTION

Company K's earnings were $12 million last year. If this year's earnings are projected to be 150 percent greater than last year's earnings, what are Company K's projected earnings this year?

(A) $13.5 million
(B) $15 million
(C) $18 million
(D) $27 million
(E) $30 million

150 percent greater is (1 + 150/100) = 2.5 times greater (the same way as 10% greater is (1+10/100)=1.1 times greater or the same way as 100% greater is (1+100/100)=2 times greater or the same way as 5% greater is (1+5/100)=1.05 times greater).

Earnings this year = 12*2.5 = 30.

Answer: E.

Abdul29 · Answer

150% is equivalent to 1.50.

So 12(1.50) = 18 increase over last year.

12 + 18 = 30.

Which is (E).

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AKG1593 · Answer

Ans.E
150% increase=1.5 times increase
12* 1.5=18 mill. increase
Total=12+18=30 million.

arunspanda · Answer

Company K's earnings were $12 million last year. If this year's earnings are projected to be 150 percent greater than last year's earnings, what are Company K's projected earnings this year?

(A) $13.5 million
(B) $15 million
(C) $18 million
(D) $27 million
(E) $30 million

Projected Earning = This year Earning * (1 + \frac{150}{100})=$12 Million *(2.5) = $ 30 Million

Answer:  (E)

sabineodf · Answer

150% increase = 12million*2.5 = 30million

!

rhine29388 · Answer

150% greater means original + 1.5 times the original = 2.5 * original
Earnings last year = $12 million
Earnings this year = 2.5 * 12 = $30 million
correct answer - E

mbaapp1234 · Answer

It's import to remember that a percent increase is not the same as a percent of a quantity.

Let x = 100

% | Percent of 100 | Percent growth of 100
0 | 0 | 100
50 | 50 | 150
100 | 100 | 200
150 | 150 | 250

So percent growth is (100% + percent growth rate) * original quantity

In this case, 12*2.5 = 30.

ScottTargetTestPrep · Answer

Since this year's earnings are projected to be 150% greater than last year’s earnings of 12 million, this year's earnings are projected to be 2.5(12) = 30 million dollars.
 
Answer: E

susheelh · Answer

Here's Another way to do this

150% Increase from original means = Original + 150% of Original = Original + 100% Original + 50% Original = Original + Original + Original/2

In this case its 12 + 12 + 12/6 = 24+6 = 30 Million

Abhishek009 · Answer

150% = 100% + 50%

150% of 12 million = 100% of 12 million + 50% of 12 Million

Or, 150% of 12 million = 12 million + 6 Million

Or, 150% of 12 million = 18 million

Thus, answer must be (C)

Erjan_S · Answer

I followed the same logic and had C. Moreover, I am sure that most of financial managers reading would immediately come up with 18 million and not 30 millions. But it seems it is GMAT logic that works like this...

adkikani · Answer

niks18 pushpitkc pikolo2510 Did Erjan_S Abhishek009 forget to add 100% ie 12 to 18 as Bunuel suggested

niks18 · Answer

Hi  adkikani

what they did was simply 150% of Earnings. But the question states that the Earnings  greater by 150%

so new earning = Old earning +150% of Old Earning

Abhishek009 · Answer

150% = 3/2 , 150% more =  1 + \frac{3}{2} = > \frac{5}{2}

So, estimated value of Company K's projected earnings will be  \frac{5}{2}*12 =>30 , Answer must be (E)

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Company K's earnings were $12 million last year. If this year's earnin

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