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Bunuel
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Bumping for review and further discussion*. Get a kudos point for an alternative solution!

*New project from GMAT Club!!! Check HERE

All DS Min/Max Problems to practice: search.php?search_id=tag&tag_id=42
All PS Min/Max Problems to practice: search.php?search_id=tag&tag_id=63
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\(2005 ------2006-------------2007\)
\(x --------x(1+\frac{a}{100})----------x(1+\frac{a}{100})(1+\frac{b}{100})\)

\(% increase=\frac{x(1+\frac{a}{100})(1+\frac{b}{100})-x}{x}*100\)

\(=\frac{(100+a)(100+b)-100^2}{100^2}*100\)

\(=\frac{a+b+ab}{100}\)
as given a+b=20
\(=20+\frac{ab}{100}\)

To maximize \(\frac{ab}{100}\) we must keep a=b=10.

i.e. %increase = 20 + 1=21 (E)
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I did it as follows:

The formula for successive increase is A+B+AB/100

Aim: to maximize %; given a+b=20
As stated by Bunuel for a given sum of two numbers, their product is maximized when they are equal therefore a=b;

Appling the above:
20 + 10*10/100 => 20+1 => 21%
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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.
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