Increasing the original price of an article by 15% and then : GMAT Problem Solving (PS)
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Increasing the original price of an article by 15% and then

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Increasing the original price of an article by 15% and then [#permalink]

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09 Mar 2013, 20:48
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Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %?

A. 34
B. 40
C. 68
D. 88
E. 102

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help
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Re: increasing the original price of an article by 15% and then [#permalink]

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09 Mar 2013, 21:24
chiccufrazer1 wrote:
Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %?

A.34 B.40 C.68 D.88 E.102

Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

To INCREASE a certain number by 15%, you will have to multiply by 1.15
To DECREASE a certain number by 15%, you will have to multiply by 0.85.
To find what 15% of a certain number is, you will have to multiply by 0.15

Lets say the original price of the article is 10$Multiplying 10 by 1.15 we get 11.5$
Now multiplying 11.5 by 1.15 again we get 13.225 which is the same as increasing 10 by 32%.
So the answer you got is correct.

If the answer choices aren't incorrect, you would be best served to choose the closest possible answer choice i.e. A and move on.
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Re: Increasing the original price of an article by 15% and then [#permalink]

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10 Mar 2013, 04:49
chiccufrazer1 wrote:
Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %?

A. 34
B. 40
C. 68
D. 88
E. 102

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

The actual increase would be a little more that 15 + 15 = 30%, only A fits.

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Hope it helps.
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Re: Increasing the original price of an article by 15% and then [#permalink]

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10 Mar 2013, 07:52
chiccufrazer1 wrote:
Increasing the original price of an article by 15% and then increasing the new price by 15% again is equivalent to increasing the original price by what %?

A. 34
B. 40
C. 68
D. 88
E. 102

[Reveal] Spoiler:
Hey guys this might be as simple as abc for a math problem to you but not me..anyway this is how i did it after reading a gmat study guide on percents from platinumgmat albeit i dd not pretty well understand it..the two percentages in decimal form,will be as 0.15 each..x(0.15)multiply(0.15) the result is 1.3325x..to one decimal place it is 1.3x..i then found the percentage increase {(end value - start value)/start value)}*100 hence {(1.3225x-x)/x)}*100 =32.25 (to the nearest whole number;32..but among the answer choices there is no 32)how did i get it wrong?please help

During successive increment or decrements we can apply below mentioned logic. Helps to calculate faster

Let the price of a commodity is increased by a% and then b% then the final increment will be

1 + a/100 + b/100 + ab/10000

Now the same logic can be applied with decrements also with just changing the signs.
Let for example price of commodity is increased by a% and then decreased by b% then the resulting increase/decrease will be

1 + a/100 - b/100 -ab/10000

For the above question the approach will be

1 + 0.15 + 0.15 + 0.0225 = 1.3225 ==> 32.25%
Re: Increasing the original price of an article by 15% and then   [#permalink] 10 Mar 2013, 07:52
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