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m07#21

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Status: Nothing comes easy: neither do I want.
Joined: 12 Oct 2009
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Location: Malaysia
Concentration: Technology, Entrepreneurship
Schools: ISB '15 (M)
GMAT 1: 670 Q49 V31
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m07#21 [#permalink] New post 11 Jul 2010, 02:56
If a 5-year construction project is structured to double the investment every succeeding year, what percentage of the total cost was invested in the first year?

* 12.5%
* 10%
* 8.25%
* 5%
* 3%

Though I got the right answer but I m not convinced with the official explanation.

[Reveal] Spoiler: OE
Let's say we invested $10 the first year. The second year it will be $20 more, third - $40 more, fourth - $80 more, and fifth - $160 more. Now, add them: 10+20+40+80+160 = 310. So, the original investment was \frac{10}{310} or \frac{1}{31} or about 3%.


[Reveal] Spoiler: my explanation
In first year - x
After 1st year - 2x
After 2nd year - 4x
After 3rd year - 8x
After 4th year - 16x
After 5th year - 32x

so %age = 1/32 * 100 = approx 3%


Bunnel letme know if my method is wrong.
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Re: m07#21 [#permalink] New post 11 Jul 2010, 17:13
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Gurpreet, yes your method is wrong because you shouldn't calculate after 5th year(by which you actually including the 6th year investment also)

Also, to get the total investment you have to add all the years' investment.

Hope you are clear
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Re: m07#21 [#permalink] New post 02 Jun 2011, 08:56
I partially agree with gurpreet

if we start with x or 1.

the amount after 1st year = 2x or 2

after 5th year = 32x or 32

is it not so ?
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Re: m07#21   [#permalink] 02 Jun 2011, 08:56
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