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# The value of an investment increases by x% during January

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The value of an investment increases by x% during January [#permalink]  06 Oct 2010, 08:02
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72% (02:41) correct 27% (01:47) wrong based on 2 sessions
The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ?

A. (200x)\(100 + 2x)
B. x(2 + x)\(1 + x)^2
C. 2x\1 + 2x
D. x(200 + x)\10,000
E. 100 –( 10,000 \ 100 + x)
[Reveal] Spoiler: OA
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Re: Nice question on percentage [#permalink]  06 Oct 2010, 08:28
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prashantbacchewar wrote:
The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ?
(200x)\(100 + 2x)
x(2 + x)\(1 + x)^2
2x\1 + 2x
x(200 + x)\10,000
100 –( 10,000 \ 100 + x)

I got this question on MGMAT exam and got it wrong during the test. Later during the review I was able to solve this question correctly. I felt I should post this.

Let the value of investment at the beginning of January be I.
Then the value of the investment at the end of February would be I(1+\frac{x}{100})(1-\frac{y}{100}).

We are told that these values are equal: I=I(1+\frac{x}{100})(1-\frac{y}{100}) --> 100^2=(100+x)(100-y) --> 100^2=100^2-100y+100x-xy --> y=\frac{100x}{100+x} or which is the same y=100-\frac{10,000}{100+x}.

This question can also be done by picking some smart numbers for I, x and y (say I=10, x=100 and y=50).
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Re: Nice question on percentage [#permalink]  06 Oct 2010, 08:30
I got to the OA but it took much longer than 2 minutes!!

At first I tired algebra but failed, so I switched to picking numbers...

I set the original amount to $100, x = 10% and solved for y using this formula: 100 = 100(1.1)(1-\frac{y}{100}) Then I looked at which of the answer choices gave me the same value. Haas Thread Master Joined: 24 Jun 2010 Posts: 141 Concentration: Strategy, Technology Followers: 6 Kudos [?]: 14 [0], given: 26 Re: Nice question on percentage [#permalink] 06 Oct 2010, 08:39 Bunuel wrote: prashantbacchewar wrote: The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ? (200x)\(100 + 2x) x(2 + x)\(1 + x)^2 2x\1 + 2x x(200 + x)\10,000 100 –( 10,000 \ 100 + x) I got this question on MGMAT exam and got it wrong during the test. Later during the review I was able to solve this question correctly. I felt I should post this. Let the value of investment at the beginning of January be I. Then the value of the investment at the end of February would be I(1+\frac{x}{100})(1-\frac{y}{100}). We are told that these values are equal: I=I(1+\frac{x}{100})(1-\frac{y}{100}) --> 100^2=(100+x)(100-y) --> 100^2=100^2-100y+100x-xy --> y=\frac{100x}{100+x} or which is the same y=100-\frac{10,000}{100+x}. Answer: E. This question can also be done by picking some smart numbers for I, x and y (say I=10, x=100 and y=50). Ah good tips here.. I was almost there but didn't restate to y=100-\frac{10,000}{100+x} so I thought my math was wrong.. Thanks for the smart values. GMAT Club team member Joined: 02 Sep 2009 Posts: 11610 Followers: 1801 Kudos [?]: 9594 [1] , given: 829 Re: Nice question on percentage [#permalink] 06 Oct 2010, 08:42 1 This post received KUDOS krazo wrote: I got to the OA but it took much longer than 2 minutes!! At first I tired algebra but failed, so I switched to picking numbers... I set the original amount to$100, x = 10% and solved for y using this formula:

100 = 100(1.1)(1-\frac{y}{100})

Then I looked at which of the answer choices gave me the same value.

10% for x is not a good choice. Chosen numbers should be easy to manipulate with.

Try initial investment to be $10 (I=$10) increase by 100% (x=100) --> you'll get $20. Now we need$20 to reduce back to $10, so it's 50% decrease (y=50). Substitute x=100 in answer choices to see which gives y=50 --> E: 100-\frac{10,000}{100+x}=100-\frac{10,000}{100+100}=50=y --> correct. It might happen that for some choices of I, x and y, other options may be "correct" as well. If this happens just pick some other numbers and check again these "correct" options only. Hope it's clear. _________________ Senior Manager Joined: 21 Mar 2010 Posts: 321 Followers: 5 Kudos [?]: 17 [0], given: 33 Re: Nice question on percentage [#permalink] 21 Feb 2011, 08:21 There was a formula for successive percents: is there a way to solve it using the same. Net percent = a+ b + ab/100 where a is the initial percent and b is the next percent change. http://www.veritasprep.com/blog/2011/02 ... e-changes/ Please help! Intern Joined: 06 Feb 2011 Posts: 29 Followers: 0 Kudos [?]: 2 [0], given: 4 Re: Nice question on percentage [#permalink] 21 Feb 2011, 08:38 Bunuel wrote: prashantbacchewar wrote: The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ? (200x)\(100 + 2x) x(2 + x)\(1 + x)^2 2x\1 + 2x x(200 + x)\10,000 100 –( 10,000 \ 100 + x) I got this question on MGMAT exam and got it wrong during the test. Later during the review I was able to solve this question correctly. I felt I should post this. Let the value of investment at the beginning of January be I. Then the value of the investment at the end of February would be I(1+\frac{x}{100})(1-\frac{y}{100}). We are told that these values are equal: I=I(1+\frac{x}{100})(1-\frac{y}{100}) --> 100^2=(100+x)(100-y) --> 100^2=100^2-100y+100x-xy --> y=\frac{100x}{100+x} or which is the same y=100-\frac{10,000}{100+x}. Answer: E. This question can also be done by picking some smart numbers for I, x and y (say I=10, x=100 and y=50). Hi Brunel For your solution, once you arrive at the answer y={100x}/{100+x}; how do you know intuitively to multiply to get y = 100 - 10,000/(100+x)? Or do you work backwards from y = 100 - 10,000/(100+x) to get y={100x}/{100+x}? I am trying to solve this question using algebra only but was thinking if its better to use values instead... SVP Joined: 16 Nov 2010 Posts: 1721 Location: United States (IN) Concentration: Strategy, Technology Followers: 26 Kudos [?]: 228 [0], given: 34 Re: Nice question on percentage [#permalink] 21 Feb 2011, 19:24 The answer is E P(1 + x/100) (1 - y/100) = P ( 100 + x) (100-y) = 10000 100-y = 10000/(100+x) => y = 100 - 10000/(100+x) _________________ Formula of Life -> Achievement/Potential = k * Happiness (where k is a constant) Find out what's new at GMAT Club - latest features and updates Intern Joined: 21 Feb 2011 Posts: 2 Followers: 1 Kudos [?]: 0 [0], given: 0 Re: Nice question on percentage [#permalink] 21 Feb 2011, 19:26 I got this one right. Once you have y = ... , you can look through the choices and see that only E is remotely similar to the desired form. Just check by changing your answer to the form in E). Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 3113 Location: Pune, India Followers: 572 Kudos [?]: 2015 [0], given: 92 Re: Nice question on percentage [#permalink] 22 Feb 2011, 19:29 mbafall2011 wrote: There was a formula for successive percents: is there a way to solve it using the same. Net percent = a+ b + ab/100 where a is the initial percent and b is the next percent change. http://www.veritasprep.com/blog/2011/02 ... e-changes/ Please help! The formula gives you the overall percentage change. Since the value of the investment is the same after the two successive percentage changes, it means the overall percentage change is 0. x - y - xy/100 = 0 (Since y is a decrease) x - y(1 + x/100) = 0 y = 100x/(100 + x) (which is the same as 100 - 10,000/(100 + x)) Answer (E) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Save 10% on Veritas Prep GMAT Courses And Admissions Consulting Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options. Veritas Prep Reviews Director Joined: 01 Feb 2011 Posts: 791 Followers: 11 Kudos [?]: 63 [0], given: 42 Re: Nice question on percentage [#permalink] 05 Mar 2011, 20:08 Good question. Prashant , i appreciate you posting the question. Please post the multiple choices , if available. That way others can solve the problem too without looking at the solution directly. Thanks for posting the question. Senior Manager Joined: 08 Nov 2010 Posts: 435 WE 1: Business Development Followers: 6 Kudos [?]: 25 [0], given: 161 Re: Nice question on percentage [#permalink] 05 Sep 2011, 14:28 VeritasPrepKarishma wrote: mbafall2011 wrote: There was a formula for successive percents: is there a way to solve it using the same. Net percent = a+ b + ab/100 where a is the initial percent and b is the next percent change. http://www.veritasprep.com/blog/2011/02 ... e-changes/ Please help! The formula gives you the overall percentage change. Since the value of the investment is the same after the two successive percentage changes, it means the overall percentage change is 0. x - y - xy/100 = 0 (Since y is a decrease) x - y(1 + x/100) = 0 y = 100x/(100 + x) (which is the same as 100 - 10,000/(100 + x)) Answer (E) can someone please explain me how 100x/(100+x) == 100 - 10,000/(100+x) thanks. _________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 3113 Location: Pune, India Followers: 572 Kudos [?]: 2015 [1] , given: 92 Re: Nice question on percentage [#permalink] 05 Sep 2011, 22:09 1 This post received KUDOS 144144 wrote: can someone please explain me how 100x/(100+x) == 100 - 10,000/(100+x) thanks. 100 - \frac{10,000}{(100+x)} = \frac{(10,000 + 100x - 10,000)}{(100+x)} = \frac{100x}{(100+x)} _________________ Karishma Veritas Prep | GMAT Instructor My Blog Save 10% on Veritas Prep GMAT Courses And Admissions Consulting Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options. Veritas Prep Reviews Intern Joined: 15 Apr 2010 Posts: 48 Followers: 0 Kudos [?]: 9 [0], given: 10 Re: Nice question on percentage [#permalink] 25 Nov 2012, 07:33 VeritasPrepKarishma wrote: 144144 wrote: can someone please explain me how 100x/(100+x) == 100 - 10,000/(100+x) thanks. 100 - \frac{10,000}{(100+x)} = \frac{(10,000 + 100x - 10,000)}{(100+x)} = \frac{100x}{(100+x)} This MGMAT question is not cool. I arrived at y=100x/(100+x) and stared at the 5 answer choices for like 4 mins before deciding to guess (which I was wrong) and move on. In the real test, how am I supposed to know which answer choice will reduce into my answer. This is not to mention there are chances that I made mistakes to arrive at my own answer too. So I wouldn't risk spending the time to work out on each of the answer (5 of them to reach E) choice and hope that it will arrive at my result. The only thing I agree here is when making a quick glance, only E has the same denominator, which makes it a good contender. Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 3113 Location: Pune, India Followers: 572 Kudos [?]: 2015 [0], given: 92 Re: Nice question on percentage [#permalink] 05 Dec 2012, 23:51 catennacio wrote: VeritasPrepKarishma wrote: 144144 wrote: can someone please explain me how 100x/(100+x) == 100 - 10,000/(100+x) thanks. 100 - \frac{10,000}{(100+x)} = \frac{(10,000 + 100x - 10,000)}{(100+x)} = \frac{100x}{(100+x)} This MGMAT question is not cool. I arrived at y=100x/(100+x) and stared at the 5 answer choices for like 4 mins before deciding to guess (which I was wrong) and move on. In the real test, how am I supposed to know which answer choice will reduce into my answer. This is not to mention there are chances that I made mistakes to arrive at my own answer too. So I wouldn't risk spending the time to work out on each of the answer (5 of them to reach E) choice and hope that it will arrive at my result. The only thing I agree here is when making a quick glance, only E has the same denominator, which makes it a good contender. There are many ways to solve a question. One important thing is exposure to different methods. When I saw this question, I knew I have seen a formula which could be easily used. Another method could be just plugging in values. Say initial investment was$100 and final was also \$100.
Say it increased by 10% (x = 10) in Jan so it became 110.
By what % should it decrease to become 100 again? By (10/110) *100= 100/11 %

Now plug in x = 10 and the option that gives you 100/11 is the answer.
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Re: The value of an investment increases by x% during January [#permalink]  03 Jan 2013, 15:54
What if I just plug in 0 for X and hence 0 for Y? Hence I also end up with E as this is the only answer choice that (1) gives me a value and (2) gives me the value 0. This takes like 10sec to figure out the solution...

Is this just coincidence that it worked in this case (i.e. 0 is normally a bad number to pick?) or is it okay to pick the number 0 and then to check the answer choices?
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Re: The value of an investment increases by x% during January [#permalink]  03 Jan 2013, 20:36
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ln2282 wrote:
What if I just plug in 0 for X and hence 0 for Y? Hence I also end up with E as this is the only answer choice that (1) gives me a value and (2) gives me the value 0. This takes like 10sec to figure out the solution...

Is this just coincidence that it worked in this case (i.e. 0 is normally a bad number to pick?) or is it okay to pick the number 0 and then to check the answer choices?

There is nothing wrong with taking x = 0, y = 0 since it is a possible situation. IF there is no change in Jan, there will be no change in Feb to keep the value same at the end of Feb.
Generally, x = 0 or x = 1 are great values to take.

The only problem is that it doesn't give you the answer here.
Put x = 0 in all other options, you get y = 0 (numerator becomes 0 in every case and denominator is non-zero).
So you cannot say what the answer is.
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Re: The value of an investment increases by x% during January [#permalink]  03 Jan 2013, 23:22
I = I(1 + x/100)(1 - y/100)
y = 100x/(100 + x)
Re: The value of an investment increases by x% during January   [#permalink] 03 Jan 2013, 23:22
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