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Gmatclub Test Question [#permalink] New post 07 Sep 2009, 03:28
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Gold depreciated at a rate of X% per year between 2000 and 2005. If 1 kg of gold cost S dollars in 2001 and T dollars in 2003, how much did it cost in 2002 ?

(C) 2008 GMAT Club - m25#6

* T\frac{S}{2}
* T\sqrt{\frac{T}{S}}
* T\sqrt{S}
* T\frac{S}{\sqrt{T}}
* \sqrt{ST}

Can someone explain why 2002 is K^2S? Why is it squared?
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Re: Gmatclub Test Question [#permalink] New post 07 Sep 2009, 04:11
is the answer

S (T/S)^0.5
=(ST)^0.5
thailandvc wrote:
Gold depreciated at a rate of X% per year between 2000 and 2005. If 1 kg of gold cost S dollars in 2001 and T dollars in 2003, how much did it cost in 2002 ?

(C) 2008 GMAT Club - m25#6

* T\frac{S}{2}
* T\sqrt{\frac{T}{S}}
* T\sqrt{S}
* T\frac{S}{\sqrt{T}}
* \sqrt{ST}

Can someone explain why 2002 is K^2S? Why is it squared?

_________________

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Re: Gmatclub Test Question [#permalink] New post 07 Sep 2009, 10:14
2001 rate = S

2002 rate = S(1 -\frac{X}{100})

2003 rate = S (1 - \frac{X}{100})^2 = T

=> (1 - X/100) = \sqrt{\frac{T}{S}}

=> 2002 rate = S * \sqrt{\frac{T}{S}} = \sqrt{T*S}

Ans. E
Re: Gmatclub Test Question   [#permalink] 07 Sep 2009, 10:14
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