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

It is currently 24 Oct 2014, 17:35

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

The market value of a certain machine decreased by 30

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 19 Feb 2007
Posts: 328
Followers: 1

Kudos [?]: 8 [0], given: 0

The market value of a certain machine decreased by 30 [#permalink] New post 27 Jun 2007, 08:57
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (02:29) correct 0% (00:00) wrong based on 1 sessions
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800
Senior Manager
Senior Manager
User avatar
Joined: 28 Feb 2007
Posts: 308
Followers: 1

Kudos [?]: 28 [0], given: 0

 [#permalink] New post 27 Jun 2007, 09:09
something is wrong with this question.

If the market value is X, then
after 1 year it is 0.7X
2 years later it must be 0.7X*0.7=0.49X

so answer should be 0.49*8000=3920

but there is no such answer.
maybe they took 8000 *(1-2*0.3)=3200
Manager
Manager
User avatar
Joined: 27 Jun 2007
Posts: 200
Followers: 3

Kudos [?]: 12 [0], given: 0

 [#permalink] New post 27 Jun 2007, 09:25
UMB wrote:
something is wrong with this question.

If the market value is X, then
after 1 year it is 0.7X
2 years later it must be 0.7X*0.7=0.49X

so answer should be 0.49*8000=3920

but there is no such answer.
maybe they took 8000 *(1-2*0.3)=3200


I think that the 3,200 is correct; there isn't anything wrong. The question states that "decreased by 30 percent of its purchase price each year," which to me, indicates a 30% drop in value per year of the machine.

Does it make sense to depreciate in that method? I don't think so, but the way the question is worded, I would go with 3,200.
1 KUDOS received
CEO
CEO
User avatar
Joined: 21 Jan 2007
Posts: 2769
Location: New York City
Followers: 8

Kudos [?]: 257 [1] , given: 4

 [#permalink] New post 02 Oct 2007, 12:52
1
This post received
KUDOS
UMB wrote:
something is wrong with this question.

If the market value is X, then
after 1 year it is 0.7X
2 years later it must be 0.7X*0.7=0.49X

so answer should be 0.49*8000=3920

but there is no such answer.
maybe they took 8000 *(1-2*0.3)=3200


it is 30% of purchase price

not 30% of market value and the subsequent market value (year 2)

so it is .30 (8000) = 2400
x2 = 4800

8000 - 4800 = 3200
  [#permalink] 02 Oct 2007, 12:52
    Similar topics Author Replies Last post
Similar
Topics:
The value of the dollar in international markets will rlevochkin 4 14 Aug 2010, 14:02
1 The market value of a certain machine decreased by 30 percent of its vannu 5 12 Aug 2009, 06:29
Market Value sher676 4 31 Jul 2009, 18:50
The market value of a certain machine decreased by 30 Amit05 1 18 May 2007, 21:44
The value of the dollar in international markets will boksana 13 15 Feb 2005, 06:55
Display posts from previous: Sort by

The market value of a certain machine decreased by 30

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.