During a three-year period, the profits of company X changed by what percent from the second year to the third year?Here we are asked to find percentage increase of company's profit from the second year to the third year.
(1) The increase in profits of company X from the first year to the second year was the same as the increase from the first year to the third year.Since the percentage increase from 1st year to 2 nd year is same as the increase from 1st year to 3 rd year, we can conclude that profit of the company in 2nd year and 3 rd year are the same and the percentage increase from 2 nd year to 3 rd year will be 0 %.
Lets explain it through an example.
profit of company X in 1st year = 100 $
Percentage increase of profit from 1st year to 2 nd year = 10 %
profit of company X in 2 nd year = 100 + 10 $ = 110$
percentage increase from 1st year to 3 rd year is 10 % which is same as that of from 1st year to 2 nd year
profit of company X in 3 rd year = 100 + 10 $ = 110$
profit of company X in 2 nd year = profit of company X in 3 rd year = 110$
Since profit in 2nd and 3rd year are not changing, the percentage increase would be 0 %
Statement 1 is sufficient.
(2) For company X, the profits for the first year were $13,800 and the profits for the third year were $15,900Profit of the company in 2nd year is not mentioned in statement 2, hence it is not sufficient
Option A is the right answer
Thanks,
Clifin J Francis,
GMAT SME _________________
Crackverbal Prep Team
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