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

 It is currently 26 Nov 2015, 12:26

### 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

# Events & Promotions

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

# The original price of an article was reduced by 25 percent.

 Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Manager
Joined: 03 Feb 2007
Posts: 164
Followers: 1

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

The original price of an article was reduced by 25 percent. [#permalink]  29 Mar 2007, 10:18
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

The original price of an article was reduced by 25 percent. During a special sale the new price was decreased by 10 percent. By approximately what percent would the price now have to be increased in order to restore the price of the article to its original amount?

A) 32.5%
B) 35%
C) 48%
D) 65%
E) 67.5%

Is it 32.5 or 48? I figured it was 48, but PR says its 32.5
Intern
Joined: 11 Feb 2007
Posts: 30
Followers: 0

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

[#permalink]  29 Mar 2007, 10:33
let the original price be x.
reduced by 25%, it becomes, 0.75x.
reduced by another 10%, it becomes, 0.675x.

that is 67.5% of the original or a decrease in 32.5%. the price would have to be increased by 32.5% in order to get back to the original.
Manager
Joined: 03 Feb 2007
Posts: 164
Followers: 1

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

[#permalink]  29 Mar 2007, 10:34
saikadelik wrote:
let the original price be x.
reduced by 25%, it becomes, 0.75x.
reduced by another 10%, it becomes, 0.675x.

that is 67.5% of the original or a decrease in 32.5%. the price would have to be increased by 32.5% in order to get back to the original.

aren't you taking the percentage increase of the 67.5? Thus 32.5 of 67.5 is 48? When do you know to do that?
Intern
Joined: 11 Feb 2007
Posts: 30
Followers: 0

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

[#permalink]  29 Mar 2007, 11:47
the question asks for 'by what percent should the price be increased'. it does not ask for 'increase in percent of the price'.

think of the % as units.
Manager
Joined: 15 Nov 2006
Posts: 219
Location: Ohio
Followers: 1

Kudos [?]: 30 [0], given: 0

[#permalink]  29 Mar 2007, 18:42
my answer is 48%.

what is OA?
Manager
Joined: 28 Feb 2007
Posts: 197
Location: California
Followers: 2

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

Re: PLEASE ANSWER [#permalink]  29 Mar 2007, 18:51
IHATEMELGIBSON1 wrote:
The original price of an article was reduced by 25 percent. During a special sale the new price was decreased by 10 percent. By approximately what percent would the price now have to be increased in order to restore the price of the article to its original amount?

A) 32.5%
B) 35%
C) 48%
D) 65%
E) 67.5%

Is it 32.5 or 48? I figured it was 48, but PR says its 32.5

Let original price be P
Current price = 9/10 x 3/4 x P = 27/40 P

Percent increase to come to original = [P - 27/40P]/27/40P x 100
which comes to 48%

I think if this is not the answer then I am misunderstanding the question
Manager
Joined: 11 Nov 2006
Posts: 144
Followers: 1

Kudos [?]: 2 [0], given: 0

[#permalink]  01 Apr 2007, 11:36
Po = $100 (ASSUMPTION) P1 (after 1st discount) = 75% x$100 = $75 P2 (after 2nd discount) = 90% x$75 = $67.5 P2-Po =$32.5

The percentage increase from P2 to Po (remember that our reference is still P2) is: % = (P2-Po)/Po = 32.5/67.5 = 48%

Therefore, my answer is C)
Manager
Joined: 18 Mar 2004
Posts: 50
Followers: 0

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

[#permalink]  01 Apr 2007, 12:48
Agree, I would also say the answer is 48% as the question asks by how much the price has to be increased. The price (currently 67.5% reduced) has to be increased by 48% to get to the original level.

The PR answer is clearly misleading. Maybe a mistake.
Manager
Joined: 26 Feb 2007
Posts: 93
Followers: 1

Kudos [?]: 7 [0], given: 0

[#permalink]  01 Apr 2007, 15:46
it will be 48%:-D. if oa says 32.5 % then either OA is wrong or there is some typo error in question
[#permalink] 01 Apr 2007, 15:46
Display posts from previous: Sort by

# The original price of an article was reduced by 25 percent.

 Question banks Downloads My Bookmarks Reviews Important topics

 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®.