Last visit was: 23 Mar 2025, 14:20 It is currently 23 Mar 2025, 14:20
Home
GMAT
Messages
Tests
Schools
Reviews
Rewards
Chat
My Profile
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
Back to Forum
Create Topic
User avatar
MrWhite
User avatar
Joined: 23 Feb 2022
Last visit: 23 Mar 2025
Posts: 36
Own Kudos:
896
 [19]
Given Kudos: 93
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)
Schools: Oxford Said'25 (A)
GMAT Focus 1: 645 Q83 V84 DI79
GMAT 1: 650 Q46 V34
Posts: 36
Kudos: 896
 [19]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 24 Oct 2023, 20:31
Kudos
Add Kudos
19
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

35% (medium)

Question Stats:

74% (02:00) correct 26% (01:59) wrong based on 486 sessions

History

Date
Time
Result
Not Attempted Yet
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 5841 times ]
ShowHide Answer
Official Answer
D
Most Helpful Reply
User avatar
gmatophobia
User avatar
Quant Chat Moderator
Joined: 22 Dec 2016
Last visit: 23 March 2025
Posts: 3,117
Own Kudos:
7,913
 [7]
Given Kudos: 1,860
Location: India
Concentration: Strategy, Leadership
Products:
GMAT Club Tests Forum Quiz
Posts: 3,117
Kudos: 7,913
 [7]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 24 Oct 2023, 23:10
6
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
MrWhite
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
General Discussion
User avatar
MrWhite
User avatar
Joined: 23 Feb 2022
Last visit: 23 Mar 2025
Posts: 36
Own Kudos:
896
 [1]
Given Kudos: 93
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)
Schools: Oxford Said'25 (A)
GMAT Focus 1: 645 Q83 V84 DI79
GMAT 1: 650 Q46 V34
Posts: 36
Kudos: 896
 [1]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 24 Oct 2023, 20:35
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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
rakshitkonchada
User avatar
Joined: 30 Apr 2023
Last visit: 12 Mar 2025
Posts: 62
Own Kudos:
16
 [3]
Given Kudos: 167
Location: India
Schools: ESSEC (II)
GMAT Focus 1: 675 Q84 V86 DI81
GPA: 9.2
Schools: ESSEC (II)
GMAT Focus 1: 675 Q84 V86 DI81
Posts: 62
Kudos: 16
 [3]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 24 Oct 2023, 22:56
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
MrWhite
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
Jake7Wimmer
User avatar
Joined: 25 Apr 2023
Last visit: 24 Jan 2025
Posts: 24
Own Kudos:
26
 [1]
Given Kudos: 8
GMAT Focus 1: 625 Q79 V83 DI81
GMAT 1: 650 Q48 V32
GMAT 2: 650 Q47 V32
GMAT Focus 1: 625 Q79 V83 DI81
GMAT 2: 650 Q47 V32
Posts: 24
Kudos: 26
 [1]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 28 Apr 2024, 09:05
Kudos
Add Kudos
Bookmarks
Bookmark this Post
'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
sayan640
User avatar
Joined: 29 Oct 2015
Last visit: 22 Mar 2025
Posts: 1,211
Own Kudos:
672
Given Kudos: 776
GMAT 1: 570 Q42 V28
Products:
My Reviews
GMAT 1: 570 Q42 V28
Posts: 1,211
Kudos: 672
A certain company's yearly revenue was 20% less in 2005 than in 2004. 07 Jul 2024, 04:35
Kudos
Add Kudos
Bookmarks
Bookmark this Post
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
KarishmaB
User avatar
Joined: 16 Oct 2010
Last visit: 21 Mar 2025
Posts: 15,826
Own Kudos:
72,254
 [1]
Given Kudos: 461
Location: Pune, India
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 15,826
Kudos: 72,254
 [1]
A certain company's yearly revenue was 20% less in 2005 than in 2004. 08 Jul 2024, 01:51
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
MrWhite
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/
 
Moderators:
Bunuel
Math Expert
100038 posts
Krunaal
PS Forum Moderator
505 posts