GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 23 Sep 2018, 06:01

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

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

Author Message
TAGS:

Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 49320
Economic analysts on Wall St. projected a 50% decrease in the interest  [#permalink]

Show Tags

11 Jan 2018, 22:58
00:00

Difficulty:

25% (medium)

Question Stats:

76% (01:15) correct 24% (01:20) wrong based on 38 sessions

HideShow timer Statistics

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%

_________________
Senior SC Moderator
Joined: 22 May 2016
Posts: 1979
Economic analysts on Wall St. projected a 50% decrease in the interest  [#permalink]

Show Tags

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

_________________

In the depths of winter, I finally learned
that within me there lay an invincible summer.

Economic analysts on Wall St. projected a 50% decrease in the interest &nbs [#permalink] 20 Jan 2018, 09:37
Display posts from previous: Sort by

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

Events & Promotions

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.