Last visit was: 21 Jul 2024, 21:26 It is currently 21 Jul 2024, 21:26
Toolkit
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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

# At the beginning of each year, the price of item X is 10 percent highe

SORT BY:
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 94441
Own Kudos [?]: 642840 [2]
Given Kudos: 86716
Manager
Joined: 24 Feb 2020
Posts: 119
Own Kudos [?]: 569 [0]
Given Kudos: 118
Location: Italy
WE:Analyst (Investment Banking)
GMATWhiz Representative
Joined: 07 May 2019
Posts: 3401
Own Kudos [?]: 1860 [0]
Given Kudos: 68
Location: India
GMAT 1: 740 Q50 V41
GMAT 2: 760 Q51 V40
GMAT Club Legend
Joined: 12 Sep 2015
Posts: 6804
Own Kudos [?]: 30846 [1]
Given Kudos: 799
Re: At the beginning of each year, the price of item X is 10 percent highe [#permalink]
1
Bookmarks
Top Contributor
Bunuel wrote:
At the beginning of each year, the price of item X is 10 percent higher than its price at the beginning of the previous year. During three consecutive years, if the price of item X is $8 at the beginning of the first year, what is its price at the beginning of the third year? A.$8.80
B. $9.60 C.$9.68
D. $10.00 E.$16.00

PS21150

APPROACH #1
Time : Price
Beginning of first year : $8 Beginning of second year :$8 + (10% of $8) =$8 + ($0.80) =$8.80
Beginning of 3rd year: $8.80 + (10% of$8.80) = $8.80 +$0.88 = 9.68

APPROACH #2
Key concept: Increasing a value by 10% is the same as multiplying that value by 1.10
We get:
Beginning of first year : $8 Beginning of second year : ($8)(1.10)
Beginning of 3rd year: ($8)(1.10)(1.10) = ($8)(1.21) = $9.68 Answer: C Cheers, Brent Board of Directors Joined: 11 Jun 2011 Status:QA & VA Forum Moderator Posts: 6049 Own Kudos [?]: 4767 [0] Given Kudos: 463 Location: India GPA: 3.5 WE:Business Development (Commercial Banking) Re: At the beginning of each year, the price of item X is 10 percent highe [#permalink] Bunuel wrote: At the beginning of each year, the price of item X is 10 percent higher than its price at the beginning of the previous year. During three consecutive years, if the price of item X is$8 at the beginning of the first year, what is its price at the beginning of the third year?

A. $8.80 B.$9.60
C. $9.68 D.$10.00
E. \$16.00

PS21150

Net Increase is $$10 + 10 + \frac{10*10}{100} = 21$$

Hence, Value of the item after 3rd year is $$8*\frac{121}{100} = 9.68$$, Answer must be (C)
Non-Human User
Joined: 09 Sep 2013
Posts: 34040
Own Kudos [?]: 853 [0]
Given Kudos: 0
Re: At the beginning of each year, the price of item X is 10 percent highe [#permalink]
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Re: At the beginning of each year, the price of item X is 10 percent highe [#permalink]
Moderator:
Math Expert
94441 posts