It is currently 15 Dec 2017, 13:29

# Decision(s) Day!:

CHAT Rooms | Olin (St. Louis) R1 | Tuck R1 | Ross R1 | Fuqua R1

### 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

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

# Arithmetic percents

Author Message
Intern
Joined: 11 Jan 2012
Posts: 4

Kudos [?]: 6 [0], given: 3

### Show Tags

21 Jan 2012, 16:42
Company K's earnings were \$12 million last year. If this year's earnings are projected to be 150 percent greater than last year's earnings. If this year's earnings are projected to be 150 percent greater than last year's earnings, what are company K's projected earnings last year?

Ans. 30 million

Kudos [?]: 6 [0], given: 3

Magoosh Co-Founder
Joined: 17 Sep 2011
Posts: 41

Kudos [?]: 31 [0], given: 12

Schools: UC Berkeley (Haas) - Class of 2010

### Show Tags

21 Jan 2012, 18:01
This question is testing the concept of a percent increase. Many students incorrectly choose \$18M by performing the following calculation: \$12M * 1.5 = \$18M.

The key to the question is understanding the language of X percent greater

If X is 10% greater than Y, that means X = the value of Y + 10% of the value of Y. Mathematically, we can represent this as X = Y + .1Y or X = 1.1Y

Using the same set up for this question we get:

This year's earnings = Last year's earnings + 150% of last years earnings.
This year = Last year + 1.5(Last year)
This year = 2.5(Last year)

We know "Last year" is \$12M, so this year equals 2.5(\$12M) or \$30M

We actually have a lesson video that explains the concept of percent increases and decreases in detail here:
GMAT Percent Increases and Decreases

I hope this helps, and let me know if you have any other questions!
Bhavin
_________________

Bhavin Parikh
Magoosh Test Prep

Kudos [?]: 31 [0], given: 12

Re: Arithmetic percents   [#permalink] 21 Jan 2012, 18:01
Display posts from previous: Sort by