Find all School-related info fast with the new School-Specific MBA Forum

 It is currently 24 Jul 2014, 23:09

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# % problem

Author Message
TAGS:
Manager
Joined: 24 May 2010
Posts: 85
Followers: 3

Kudos [?]: 6 [0], given: 1

% problem [#permalink]  25 May 2010, 09:19
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:29) correct 0% (00:00) wrong based on 1 sessions
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?
Intern
Joined: 26 Dec 2007
Posts: 3
Followers: 0

Kudos [?]: 0 [0], given: 3

Re: % problem [#permalink]  25 May 2010, 09:33
Hi,

the question is:
"By what (percent) did the (ratio of royalties to sales) (decrease) from the first to next"

First find out (ratio of royalties to sales):
2:10 First
0.2
8:100 Second
0.08

Decrease = 0.2-0.08 = 0.12

Percent = (0.12/0.20) = 60%.

Hope this helps.

rgds Anirudh
Math Expert
Joined: 02 Sep 2009
Posts: 18730
Followers: 3240

Kudos [?]: 22372 [0], given: 2616

Re: % problem [#permalink]  25 May 2010, 09:38
Expert's post
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

General formula for percent increase or decrease, (percent change): Percent=\frac{Change}{Original}*100

Solution: Percent decrease can be calculated by the formula above:
Percent=\frac{Change}{Original}*100=
=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.
_________________
Manager
Joined: 24 May 2010
Posts: 85
Followers: 3

Kudos [?]: 6 [0], given: 1

Re: % problem [#permalink]  25 May 2010, 09:40
Bunuel wrote:
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

General formula for percent increase or decrease, (percent change): Percent=\frac{Change}{Original}*100

Solution: Percent decrease can be calculated by the formula above:
Percent=\frac{Change}{Original}*100=
=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.

Yep typo. As a side note on the app some times for percent increase they will get a 2.9 and then say the increase is 190% can you explain
Math Expert
Joined: 02 Sep 2009
Posts: 18730
Followers: 3240

Kudos [?]: 22372 [0], given: 2616

Re: % problem [#permalink]  25 May 2010, 09:50
Expert's post
Jinglander wrote:
Bunuel wrote:
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

General formula for percent increase or decrease, (percent change): Percent=\frac{Change}{Original}*100

Solution: Percent decrease can be calculated by the formula above:
Percent=\frac{Change}{Original}*100=
=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.

Yep typo. As a side note on the app some times for percent increase they will get a 2.9 and then say the increase is 190% can you explain

This is correct: x is increased by y percent can be expressed as x*(1+y/100). So 190% increase is (1+1.9)=2.9 times increase. This is the same as if we are told that something increased by 100% it would mean that it increased 2 times.
_________________
Manager
Joined: 24 May 2010
Posts: 85
Followers: 3

Kudos [?]: 6 [0], given: 1

Re: % problem [#permalink]  25 May 2010, 10:14
how can you take x*(1+y/100) and put it in the firm x-y/x
Math Expert
Joined: 02 Sep 2009
Posts: 18730
Followers: 3240

Kudos [?]: 22372 [0], given: 2616

Re: % problem [#permalink]  25 May 2010, 10:32
Expert's post
Jinglander wrote:
how can you take x*(1+y/100) and put it in the firm x-y/x

Consider this:
Price of an apple was 1$and now price is 1.5$. What was the percent increase in price?

Percent=\frac{Change}{Original}*100=\frac{1.5-1}{1}*100=50%, the price increased by 50%, which is the same as to say that the price increased 1.5 times. So 50% increase = increase by (1+50/100)=1.5 times.

Hope it's clear.
_________________
Re: % problem   [#permalink] 25 May 2010, 10:32
Similar topics Replies Last post
Similar
Topics:
1 Problem 2 25 Nov 2010, 00:49
2 problem 10 26 Jun 2008, 07:19
Problem.. 4 18 Aug 2007, 16:21
Problem 7 16 Jun 2006, 11:05
Problem 4 19 Mar 2006, 11:27
Display posts from previous: Sort by