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Economic analysts on Wall St. projected a 50% decrease in the interest

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Math Expert
Joined: 02 Sep 2009
Posts: 58453
Economic analysts on Wall St. projected a 50% decrease in the interest  [#permalink]

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11 Jan 2018, 22:58
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Difficulty:

25% (medium)

Question Stats:

78% (01:39) correct 22% (01:25) wrong based on 42 sessions

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Economic analysts on Wall St. projected a 50% decrease in the interest rate from the Federal Reserve for the next fiscal quarter over the last fiscal quarter. The Federal Reserve, however, decided to raise rates by 20%. What percent of the projected interest rate was the actual interest rate?

A. 30%
B. 100%
C. 180%
D. 210%
E. 240%

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Joined: 22 May 2016
Posts: 3554
Economic analysts on Wall St. projected a 50% decrease in the interest  [#permalink]

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20 Jan 2018, 09:37
Bunuel wrote:
Economic analysts on Wall St. projected a 50% decrease in the interest rate from the Federal Reserve for the next fiscal quarter over the last fiscal quarter. The Federal Reserve, however, decided to raise rates by 20%. What percent of the projected interest rate was the actual interest rate?

A. 30%
B. 100%
C. 180%
D. 210%
E. 240%

Assign values
Assume the interest rate is 100.

Analysts projected a 50 percent decrease:

PROJECTED rate = 50
$$[100 - (.50*100)] = (100-50) = 50$$, OR
$$.5(100) = 50$$

The Federal Reserve raised rates by 20 percent:

ACTUAL rate = 120
$$[100 + (.20*100)] = (100 + 20) = 120$$, OR
$$1.2(100) = 120$$

What percent of the projected interest rate was the actual interest rate?
Rewrite: The ACTUAL rate was what percent of the PROJECTED rate?

Percent = $$\frac{Part}{Whole}*100$$

$$\frac{120}{50}*100= 2.4*100 = 240$$ percent

Algebra

Let x = interest rate
Projected: 0.5x
Actual: 1.2x

Actual rate is what percent of projected rate?

$$\frac{1.2x}{0.5x}*100 = 2.4*100 = 240$$ percent

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Economic analysts on Wall St. projected a 50% decrease in the interest   [#permalink] 20 Jan 2018, 09:37
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