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# The price of a commodity increases by 25% in January. There

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Manager
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The price of a commodity increases by 25% in January. There [#permalink]  16 May 2008, 07:05
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The price of a commodity increases by 25% in January. There is a subsequent 25% increase in its price in February. If a person used to get 1 unit of the commodity for \$x in December, how many units of the commodity will he get for \$2x in February?
A. 0.64x
B. 0.36x
C. 1.64x
D. 1.28x
E. 1.72x
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Joined: 28 Dec 2005
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Re: PS: Price of Commodity [#permalink]  16 May 2008, 07:32
D - 1.28x

I tried the algebraic approach and got stumped, so went with picking numbers

December price - 4 dollars
January price - 5 dollars
February price - 6.25

So in december i could get 1 unit for 4 dollars ... now i have 8 dollars, and each unit costs 6.25 ... 8/6.25 = 1.28
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Re: PS: Price of Commodity [#permalink]  16 May 2008, 09:01
wizardofwashington wrote:
The price of a commodity increases by 25% in January. There is a subsequent 25% increase in its price in February. If a person used to get 1 unit of the commodity for \$x in December, how many units of the commodity will he get for \$2x in February?
A. 0.64x
B. 0.36x
C. 1.64x
D. 1.28x
E. 1.72x

agree with D

in Jan, it costs 1.25x per unit
in Feb, it cost (1.25x)*1.25 per unit ----> (1.25^2) * x

in Feb, x dollars purchase 1/(1.25^2) of 1 unit
2x dollar = 2 * 1/(1.25^2) = 1.28 units

I am not sure why the answer choices are in x's
Current Student
Joined: 28 Dec 2004
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Location: New York City
Schools: Wharton'11 HBS'12
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Re: PS: Price of Commodity [#permalink]  16 May 2008, 10:02
quick way for me is..

price [25+25+(25^2/100)]%=56% or 56/100 appro to 50% increase

old price= 1unit/\$X..

\$2X how many units? 1/1.5 * 2 i can write 1.5 as 3/2

2/3/2=4/3 or approx 1.3...quickly scan 1.28 is the ans..
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Re: PS: Price of Commodity [#permalink]  16 May 2008, 11:13
wizardofwashington wrote:
The price of a commodity increases by 25% in January. There is a subsequent 25% increase in its price in February. If a person used to get 1 unit of the commodity for \$x in December, how many units of the commodity will he get for \$2x in February?
A. 0.64x
B. 0.36x
C. 1.64x
D. 1.28x
E. 1.72x

If the Dec price was x, the Feb price is (25/16)x, so for 2x dollars, she will get 32/25 = 128/100
Re: PS: Price of Commodity   [#permalink] 16 May 2008, 11:13
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