Last visit was: 27 Jul 2024, 07:24 It is currently 27 Jul 2024, 07:24
Decision Tracker
My Rewards
Unanswered
Active Topics
New posts
New comers' posts
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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel

A certain company's yearly revenue was 20% less in 2005 than in 2004.

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
G
MrWhite
Intern
Intern
Joined: 23 Feb 2022
Posts: 36
Own Kudos [?]: 389 [8]
Given Kudos: 92
Location: New Zealand
Concentration: Strategy, General Management
Schools: Oxford Said'25 (A)
GMAT Focus 1:
645 Q83 V84 DI79
GMAT 1: 650 Q46 V34
GPA: 8.5/9
WE:Engineering (Consulting)
Send PM
A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   24 Oct 2023, 20:31
8
Bookmarks
00:00
A
B
C
D
E

Difficulty:

45% (medium)

Question Stats:

74% (02:02) correct 26% (02:12) wrong based on 249 sessions
Hide Show DIFFICULTY AND TIMER STATISTICS
A certain company's yearly revenue was 20% less in 2005 than in 2004 and 10% greater in 2006 than in 2005. If the company's revenue in 2007 was equal to it's yearly revenue in 2004, which of the following is closest to the percent increase in the company's yearly revenue from 2006 to 2007?

(A) 5%
(B) 10%
(C) 12%
(D) 14%
(E) 15%

Show Spoiler
Attachment:
2024-01-25_12-42-51.png
2024-01-25_12-42-51.png [ 52.25 KiB | Viewed 2555 times ]
ShowHide Answer
Official Answer
D
User avatar
G
MrWhite
Intern
Intern
Joined: 23 Feb 2022
Posts: 36
Own Kudos [?]: 389 [1]
Given Kudos: 92
Location: New Zealand
Concentration: Strategy, General Management
Schools: Oxford Said'25 (A)
GMAT Focus 1:
645 Q83 V84 DI79
GMAT 1: 650 Q46 V34
GPA: 8.5/9
WE:Engineering (Consulting)
Send PM
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   24 Oct 2023, 20:35
1
Kudos
My method is as follows:

2004: X
2005: \(\frac{4X}{5}\)
2006: \(\frac{4X}{5} * \frac{11}{10} = \frac{22X}{25}\)
2007: X

% increase from 2006 to 2007 = \(\frac{3}{25}\) = 12%

I am getting 12% - (C), but official answer says its 14% - (D).

Could someone please help me understand where I am going wrong :)
User avatar
B
rakshitkonchada
Manager
Manager
Joined: 30 Apr 2023
Posts: 62
Own Kudos [?]: 14 [2]
Given Kudos: 167
Location: India
Schools: ESSEC (II)
GMAT Focus 1:
675 Q84 V86 DI81
GPA: 9.2
Send PM
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   24 Oct 2023, 22:56
2
Kudos
MrWhite wrote:
My method is as follows:

2004: X
2005: \(\frac{4X}{5}\)
2006: \(\frac{4X}{5} * \frac{11}{10} = \frac{22X}{25}\)
2007: X

% increase from 2006 to 2007 = \(\frac{3}{25}\) = 12%

I am getting 12% - (C), but official answer says its 14% - (D).

Could someone please help me understand where I am going wrong :)


Everything's fine, but you made a small mistake
it's not 3/25, it's 3/22, %change = (Next-Previous/Previous)*100
=(1-(22/25))/(22/25)
=(3/25)/(22/25)
=3/22
=0.136
Multiply by 100, it's 13.6%, close to 14%
User avatar
L
gmatophobia
Quant Chat Moderator
Joined: 22 Dec 2016
Posts: 3125
Own Kudos [?]: 5192 [3]
Given Kudos: 1859
Location: India
Concentration: Strategy, Leadership
Send PM
CAT Tests Forum Quiz Mode
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   24 Oct 2023, 23:10
3
Kudos
MrWhite wrote:
A certain company's yearly revenue was 20% less in 2005 than in 2004 and 10% greater in 2006 than in 2005. If the company's revenue in 2007 was equal to it's yearly revenue in 2004, which of the following is closest to the percent increase in the company's yearly revenue from 2006 to 2007?

(A) 5%
(B) 10%
(C) 12%
(D) 14%
(E) 15%


Let's assume that the company's revenue in 2004 was $100

Revenue in 2005 = 20% less than 2004 = $80

Revenue in 2006 = 10% greater than 2005 = $88

Revenue in 2007 = Equal to 2004 = $100

Increase = $100 - $88 = $12

% increase = \(\frac{12}{88} * 100 = 13.XX\)

Option D
User avatar
B
Jake7Wimmer
Intern
Intern
Joined: 25 Apr 2023
Posts: 23
Own Kudos [?]: 10 [1]
Given Kudos: 5
GMAT 1: 650 Q48 V32
GMAT 2: 650 Q47 V32
Send PM
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   28 Apr 2024, 09:05
'04 = 100
'05 = 80
'06 = 88
'07 = 100

'06 -> '07 = 88 -> 100

Change to 8800 and 10,000

1% of 8800 is 88 -> Eliminate a) and B) and we will try D) First.

88x14 = (80+8)(10+4) = 800+320+80+32 = 1232 (I used foil just to multiply 88x14 so that I won't make a mistake)
8800+1232 = 10,032 which is aprox 10,000

Thus 14% and D) is answer
User avatar
L
sayan640
VP
VP
Joined: 29 Oct 2015
Posts: 1125
Own Kudos [?]: 476 [0]
Given Kudos: 681
GMAT 1: 570 Q42 V28
Send PM
Reviews Badge CAT Tests Forum Quiz Mode
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   07 Jul 2024, 04:35
KarishmaB Is there smart way to approach this question apart from the conventional wya i.e (12/ 88) * 100 = 13.6 = 14% increase.
User avatar
L
KarishmaB
Tutor
Joined: 16 Oct 2010
Posts: 15160
Own Kudos [?]: 66919 [1]
Given Kudos: 436
Location: Pune, India
Send PM
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink] A certain company's yearly revenue was 20% less in 2005 than in 2004.   08 Jul 2024, 01:51
1
Kudos
Expert Reply
MrWhite wrote:
A certain company's yearly revenue was 20% less in 2005 than in 2004 and 10% greater in 2006 than in 2005. If the company's revenue in 2007 was equal to it's yearly revenue in 2004, which of the following is closest to the percent increase in the company's yearly revenue from 2006 to 2007?

(A) 5%
(B) 10%
(C) 12%
(D) 14%
(E) 15%

Show Spoiler
Attachment:
2024-01-25_12-42-51.png

­There are 3 successive percentage changes which lead to overall no change i.e. a multiplication factor of 1 overall.

\( \frac{4}{5} * \frac{11}{10} * x = 1\)

\(x = \frac{50}{44}\) which means an increase of 6/44 *100 = about 14%

Answer (D)

Video on multiplication factors in percentages: https://youtu.be/HxnsYI1Rws8
Post on successive percentage changes: https://anaprep.com/arithmetic-successi ... e-changes/
 
GMAT Club Bot
gmatclubot
Re: A certain company's yearly revenue was 20% less in 2005 than in 2004. [#permalink]
08 Jul 2024, 01:51
Moderator:
Bunuel
Math Expert
94625 posts