Last visit was: 11 Sep 2024, 23:06 It is currently 11 Sep 2024, 23:06
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
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.
Request Expert Reply

# For the first quarter of 1980, the profits of a certain food-market ch

SORT BY:
Tags:
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 95451
Own Kudos [?]: 657787 [23]
Given Kudos: 87242
Intern
Joined: 19 Jan 2019
Posts: 42
Own Kudos [?]: 14 [0]
Given Kudos: 275
Location: India
Concentration: Operations, Strategy
GPA: 3.3
GMAT Club Legend
Joined: 18 Aug 2017
Status:You learn more from failure than from success.
Posts: 8060
Own Kudos [?]: 4321 [0]
Given Kudos: 243
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1:
545 Q79 V79 DI73
GPA: 4
WE:Marketing (Energy and Utilities)
IESE School Moderator
Joined: 11 Feb 2019
Posts: 270
Own Kudos [?]: 176 [0]
Given Kudos: 53
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
B.

Let the profit in 1979 = X
Profit in 1980 = 49,350,000 = 5% more than Profit from 1979 = X + 5% of X
OR 49,350,000 = (105X)/100

Solving for X; X = 47,00,000

Increase in Profit: 49,350,00 - 47,000,000 = 2,350,000
Intern
Joined: 13 Jan 2021
Posts: 2
Own Kudos [?]: 4 [3]
Given Kudos: 1
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
3
Kudos
Does anyone have any tips for completing this question in under 2 minutes? The maths is easily done on a calculator, but I'm struggling to do it in the allowed time with just pen and paper.
Intern
Joined: 12 Jan 2021
Posts: 2
Own Kudos [?]: 0 [0]
Given Kudos: 0
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
ABH06
Does anyone have any tips for completing this question in under 2 minutes? The maths is easily done on a calculator, but I'm struggling to do it in the allowed time with just pen and paper.

You can use the written/long division method once you figured that X=98700000/21
Intern
Joined: 23 May 2020
Posts: 3
Own Kudos [?]: 6 [1]
Given Kudos: 90
Location: India
Concentration: Finance, General Management
GMAT 1: 640 Q47 V31
GPA: 3.02
WE:Accounting (Commercial Banking)
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
1
Kudos
ABH06
Does anyone have any tips for completing this question in under 2 minutes? The maths is easily done on a calculator, but I'm struggling to do it in the allowed time with just pen and paper.

Let the amount in 1979 be X
Then,

49350000= X(105/100)

X= (49350000 x 20) / 21

Instead of solving this keep going,

Difference between the two amounts=

(49350000 ) - ((49350000 x 20) / 21)

= ((49350000 x 21) / 21)) - ((49350000 x 20) / 21)

Take 4935000 in common which gives you

= (49350000 (21-20)) / 21)

= (49350000 x 1) / 21

As you can see the division is quite simple.

Ans: 2350000 (B)
Intern
Joined: 30 May 2020
Posts: 7
Own Kudos [?]: 1 [0]
Given Kudos: 2
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
Why cant 49350000 be multiplied by 0.95 then that product is the amount the increase occurred from and can't you just subtract those two to get the difference? You can use the multiplier for percent increase or decrease so you add to 1 or subtract from one accordingly? When I do that I get C. Or am I thinking of this wrong?
Manager
Joined: 16 Oct 2021
Posts: 140
Own Kudos [?]: 15 [0]
Given Kudos: 22
Location: Canada
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
GMATNinja, Bunuel, can you please advice on the most efficient way to divide 49,350,000 by 1.05?
Intern
Joined: 23 Nov 2021
Posts: 24
Own Kudos [?]: 6 [0]
Given Kudos: 3513
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
Batman117
1979 FQ profit is X
1980 FQ profit is 1.05X
Now 1.05X = 49350000
So X =47000000
And amount increase is =2350000

Posted from my mobile device

Your approach is the exact approach if you use your calculator, not the one that shows step by step the long addition and subtraction procces.

If you donot mind, please provide the step by step solution.
Intern
Joined: 23 Nov 2021
Posts: 24
Own Kudos [?]: 6 [1]
Given Kudos: 3513
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
1
Bookmarks
Here is how i did it.

Let X be the profit of Quarter-1 1979 and we know from the question that the profit of Quarter 1 1980 is $49350000, which is 5% more than the profit of Quarter 1 in 1979, meaning the profit in 1980 is 105% of the profit in 1979. Since X represents the profit in 1979, then the profit of Quarter 1 in 1980 versus the profit of Quarter 1 in 1979 looks like this algebraically:$49350000=1.05X.

To slove the question we need X without using the calculator, which is very tempting to use for this kind of questions, coz that way you will have the solution for X within seconds. But that is of not what we gonna do, considering we are not allowed to use calculator on Exam day.

For simplicity i will temporarily remove the 4 zero's behind the profit of Quarter 1 in 1980, which is $49350000, making it just 4935. 4935=1.05X Step 1/ We need the fraction equivalent of 1.05 and that is 21/20. If you wonder how you should know that, here is how: 20/20=1 and 1/20=0.05, thus 20/20 + 1/20= 21/20=1.05 Step 2/ Now that we know 1.05=21/20, then: 4935=1.05X becomes 4935=21/20X. Now we isolate X to solve for X. Divide both sides of (4935=21/20X) by 21/20)), notice when you divide 4935 by 21/20, it becomes 4935 * 20/21(you take the reciprocal of the fraction when you divide fractions by fractions or numbers by fractions) We get X= 20/21 *4935 here is the challenging part of the question, where you need creativity and shapness. For an integer to be divisible by 3, the sum of the integers digits must be divisible by 3 and for an integer to be divisible by 7 dubble the units digit of that integer and subtract that from the rest of the integer excluding the units digit. Example: 21 is divisible by 3, coz the sum of the integers digit is 2+1=3 which is divisible by 3 or 21 is divisible by 7, coz if we dubble the units digit of 21, which is 1, it becomes 2, then we subtract 2 from the rest of the integer excluding the units digit, which is 2 then we get 2-2=zero(0) which is divisible by 7. That same goes for the 4935. Now that we know 21 is divisible by 3 and 7 and 4935 is divisible 3 and 7, both are divisible by 21. Divide 21 by 21 and 4935 by 21. X= 20/21 *4935 21/21=1 and 4935/21= 235 X= 20 * 235 = 4700 here is where we add back the 4 zeros we removed at beginning of the question, which then becomes: X=47000000, which is the Profit of Quarter 1 1979. Now we subtract the profit of Quarter 1 in 1979 (X=$47000000) from the profit of Quarter 1 in 1980 $49350000, we get:$49350000(profit 1980) - $47000000(Profit 1979)=$ 2350000 is the answer.

Answer choice B

I hope it is clear.
GMAT Club Verbal Expert
Joined: 13 Aug 2009
Status: GMAT/GRE/LSAT tutors
Posts: 7056
Own Kudos [?]: 65067 [2]
Given Kudos: 1835
Location: United States (CO)
GMAT 1: 780 Q51 V46
GMAT 2: 800 Q51 V51
GRE 1: Q170 V170

GRE 2: Q170 V170
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
2
Kudos
Expert Reply
tkorzhan1995
GMATNinja, Bunuel, can you please advice on the most efficient way to divide 49,350,000 by 1.05?
Have you tried reviewing this post? Better to hold off on calculating anything until you absolutely have to.

And when you get to the final step (49,350,000/21), you can always break that up into (49,350,000/[7*3]) and divide by 7 first to make the numbers even more manageable: 49,350,000/7 = 7,050,000, so we're left with 7,050,000/3.

And if you REALLY don't want to do long division here, you could recognize that 3 divides very cleanly into 6,000,000, and then you're left with something like this: [6,000,000 + 1,050,000]/3 = 6,000,000/3 + 1,050,000/3 = 2,000,000 + 350,000 = 2,350,000.

I hope that helps!
GMAT Club Legend
Joined: 03 Oct 2013
Affiliations: CrackVerbal
Posts: 4914
Own Kudos [?]: 7906 [0]
Given Kudos: 221
Location: India
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
Top Contributor
tkorzhan1995 Most of the explanations given here are a little time consuming and calculation intensive , so thought of suggesting a shortcut approach to solve this question in less than a minute.

For the first quarter of 1980, the profits of a certain food-market chain amounted to $49,350,000. If this figure is 5 percent higher than the profits for the first quarter of 1979, what was the amount of the increase? A.$350,000
B. $2,350,000 C.$2,467,500
D. $4,688,250 E.$4,700,000

This Question is clearly based on percentage increase concept. In this case, an initial value is increased by 5 % to get a final value.
Let's assume that the initial value be 100 and it is increased by 5% , i.e 100 is increased by 5 and we will get 105 as the final value.

So in order to get back to 100 from 105, by what percentage of final value should we decrease ?

If you get the answer to this question, then 90 % of the task is done .

Is it 5 % ? No, clearly not .

But we know that 105 has to be decreased by 5 to get 100.
So the percentage decrease should be 5 /105 * 100 or the amount to be decreased = $$\frac{5}{105}$$* final value = $$\frac{5}{105}$$ *105 = 5

So lets summarize what we have discussed.

If an initial value is increased by 5 % to get a final value, then the amount increase here is 5 % of initial value or $$\frac{5}{105}$$ of final value i.e $$\frac{1}{21 }$$ of final value.

Lets apply the above discussed concept here in this question.

The amount increase = $$\frac{1}{21}$$ * Final value = $$\frac{1}{21}$$ * \$49,350,000 = 23...

You don't need to do the entire division, first 2 digit of the quotient is enough to figure the correct answer as only one answer option starts with 23...

Option B is the right answer.

If you get any different value as percentage increase instead of 5 , then assume initial value as 100 and find the corresponding percentage decrease needed to bring the final value back to 100.

Thanks,
Clifin J Francis,
GMAT Quant SME
Tutor
Joined: 02 Oct 2015
Posts: 265
Own Kudos [?]: 54 [0]
Given Kudos: 9
Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
Expert Reply
Ok but the whole point is doing it without a calculator:

Re: For the first quarter of 1980, the profits of a certain food-market ch [#permalink]
Moderator:
Math Expert
95451 posts