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# In 1986 the book value of a certain car was 2/3 original

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Intern
Joined: 10 Aug 2012
Posts: 5
In 1986 the book value of a certain car was 2/3 original  [#permalink]

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Updated on: 12 Aug 2012, 08:48
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25% (medium)

Question Stats:

73% (01:20) correct 27% (01:16) wrong based on 238 sessions

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In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988?

(A) 16 2/3%
(B) 25%
(C) 33 1/3
(D) 50%
(E) 75%

Originally posted by JustinDragna on 12 Aug 2012, 08:39.
Last edited by Bunuel on 12 Aug 2012, 08:48, edited 1 time in total.
Edited the question.
Intern
Joined: 10 Aug 2012
Posts: 5
Re: In 1986 the book value of a certain car...  [#permalink]

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12 Aug 2012, 08:41
i can see it if i draw it, but i cannot for some reason solve it arithmetically. i feel like it should be easy, but I can't see it.
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Posts: 50002
Re: In 1986 the book value of a certain car was 2/3 original  [#permalink]

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12 Aug 2012, 08:55
1
2
JustinDragna wrote:
In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988?

(A) 16 2/3%
(B) 25%
(C) 33 1/3
(D) 50%
(E) 75%

General formula for percent increase or decrease, (percent change): $$percent=\frac{Change}{Original}*100$$.

Say the original price was $6, then: In 1986 the book value of the car was 2/3*6=$4;
In 1988 the book value of the car was 1/2*6=$3; Hence from 1986 to 1988 the book value for this car decreased by $$percent=\frac{Change}{Original}*100=\frac{4-3}{4}*100=25%$$. Answer: B. _________________ Intern Joined: 10 Aug 2012 Posts: 5 Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 12 Aug 2012, 09:27 Ok, that makes sense. If you have 4 and then go to 3, that's going to be a 25$ decrease from the original value of 4.

I thought the question was asking the percent it decreased from the original price between 1986 and 1988, which would just be the difference between the two fractions *100, or 1/6(100).

Now, that I look back at my original drawing, it doesn't even make sense the way i was thinking about it.

Anyway, thanks for the help.
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Re: In 1986 the book value of a certain car was 2/3 original  [#permalink]

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16 Aug 2012, 22:56
Let say the original price of a car is 30 000 $, in 1986 its price is 20 000$ (2/3 of 30000), in 1988 its value is 15 000$(1/2 of 30000). The change in price between 86 and 88 is 5000, 5000 is 25% of 20000 (we need to take 20000 because we calculate the change from this year). _________________ If you found my post useful and/or interesting - you are welcome to give kudos! Retired Moderator Joined: 17 Sep 2013 Posts: 349 Concentration: Strategy, General Management GMAT 1: 730 Q51 V38 WE: Analyst (Consulting) Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 05 Jul 2014, 08:01 1 Best numbers: 300- Original In 1986- 200 In 1988- 150 Decrease of 50 over 200 between 86 and 88 So 25% _________________ Appreciate the efforts...KUDOS for all Don't let an extra chromosome get you down.. Intern Joined: 29 Mar 2014 Posts: 14 Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 18 Feb 2015, 16:13 Bunuel wrote: JustinDragna wrote: In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988? (A) 16 2/3% (B) 25% (C) 33 1/3 (D) 50% (E) 75% General formula for percent increase or decrease, (percent change): $$percent=\frac{Change}{Original}*100$$. Say the original price was$6, then:
In 1986 the book value of the car was 2/3*6=$4; In 1988 the book value of the car was 1/2*6=$3;

Hence from 1986 to 1988 the book value for this car decreased by $$percent=\frac{Change}{Original}*100=\frac{4-3}{4}*100=25%$$.

Thanks this is very helpful - quick question though, i see the percentage change formula is change/originalx100.. shouldn't the original be $6 dollars instead of 4 dollars? Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 8397 Location: Pune, India Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 19 Feb 2015, 00:08 pinkcupcake wrote: Bunuel wrote: JustinDragna wrote: In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988? (A) 16 2/3% (B) 25% (C) 33 1/3 (D) 50% (E) 75% General formula for percent increase or decrease, (percent change): $$percent=\frac{Change}{Original}*100$$. Say the original price was$6, then:
In 1986 the book value of the car was 2/3*6=$4; In 1988 the book value of the car was 1/2*6=$3;

Hence from 1986 to 1988 the book value for this car decreased by $$percent=\frac{Change}{Original}*100=\frac{4-3}{4}*100=25%$$.

Thanks this is very helpful - quick question though, i see the percentage change formula is change/originalx100.. shouldn't the original be $6 dollars instead of 4 dollars? Original means "base value" or the "reference value" "By what percent did the book value for this car decrease from 1986 to 1988" means that as compared with the value in 1986, by what percent did the value decrease in 1988? So the base value is the 1986 value which is 4. _________________ Karishma Veritas Prep GMAT Instructor Learn more about how Veritas Prep can help you achieve a great GMAT score by checking out their GMAT Prep Options > GMAT self-study has never been more personalized or more fun. Try ORION Free! SVP Status: The Best Or Nothing Joined: 27 Dec 2012 Posts: 1829 Location: India Concentration: General Management, Technology WE: Information Technology (Computer Software) Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 19 Feb 2015, 02:25 1 Let the original value = 1 Change $$= \frac{1}{2} * 100 * \frac{3}{2} = 75$$ Percent change = 100-75 = 25% _________________ Kindly press "+1 Kudos" to appreciate Retired Moderator Joined: 28 May 2014 Posts: 528 GMAT 1: 730 Q49 V41 Re: In 1986 the book value of a certain car was 2/3 original [#permalink] ### Show Tags 24 Oct 2017, 08:43 Suppose, the price was$300

in 1986 book value = 2/3 of $300 =$200
in 1988 book value = 1/2 of $300 =$150

Change in book value = \$50
percentage change of book value= (50/200) * 100 = 25%

Ans: B.
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Re: In 1986 the book value of a certain car was 2/3 original  [#permalink]

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24 Oct 2017, 10:31
JustinDragna wrote:
In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988?

(A) 16 2/3%
(B) 25%
(C) 33 1/3
(D) 50%
(E) 75%

Lets say original value be x
in 1986 book value = 2/3x
In 1988 book value = 1/2x
Change from 1986 to 1988 = 2/3x - 1/2 x = 1/6 x
Percentage change from 1986 to 1988 = [(1/6x)/(2/3x)]*100 = 25%

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Re: In 1986 the book value of a certain car was 2/3 original  [#permalink]

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24 Oct 2017, 10:35
JustinDragna wrote:
In 1986 the book value of a certain car was 2/3 original price, and in 1988 its book value was 1/2 the original purchase price. By what percent did the book value for this car decrease from 1986 to 1988?

(A) 16 2/3%
(B) 25%
(C) 33 1/3
(D) 50%
(E) 75%

Alternatively since the LCM of 3 and 2 is 6 . So lets take original price as some multiple of 6, say 60
Original price = 60
In 1986, book value = 2/3*60 = 40
In 1988 book value = 1/2*60 = 30
Percentage change from 1986 to 1988 = (40-30)/40 * 100 = 25%

We can solve by either method.. Taking a value will help us to solve this question in a faster manner.
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Re: In 1986 the book value of a certain car was 2/3 original &nbs [#permalink] 24 Oct 2017, 10:35
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