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# In 1998 the profits of company N were 10 percent of revenues. In 1999,

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In 1998 the profits of company N were 10 percent of revenues. In 1999,  [#permalink]

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12 Dec 2015, 09:29
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88% (01:45) correct 12% (02:40) wrong based on 92 sessions

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In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?

A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

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In 1998 the profits of company N were 10 percent of revenues. In 1999,  [#permalink]

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17 May 2017, 15:17
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In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?
A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

Let 1998 revenue be = 100
1998 Profits = 10% of revenue = 10% of 100 =$$\frac{10}{100}$$ x 100 = 10
1999 revenue = revenue fell by 20% of 1998 revenue = 80% of 100 = $$\frac{80}{100}$$ x 100 = 80
1999 Profits = 15% of 1999 revenue = 15% of 80 = $$\frac{15}{100}$$ x 80 = 12
Required fraction = 1999 Profits / 1998 Profits x 100 = $$\frac{12}{10}$$ x 100 = 120%

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Schools: WHU MBA"20 (A$) GMAT 1: 580 Q46 V24 GPA: 3.88 WE: Information Technology (Consulting) Re: In 1998 the profits of company N were 10 percent of revenues. In 1999, [#permalink] ### Show Tags 12 Dec 2015, 13:12 0,12R = x/100*0.1R Answer C _________________ When you’re up, your friends know who you are. When you’re down, you know who your friends are. Share some Kudos, if my posts help you. Thank you ! 800Score ONLY QUANT CAT1 51, CAT2 50, CAT3 50 GMAT PREP 670 MGMAT CAT 630 KAPLAN CAT 660 EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 15471 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: Q170 V170 Re: In 1998 the profits of company N were 10 percent of revenues. In 1999, [#permalink] ### Show Tags 14 Dec 2015, 17:11 Hi All, This question can be solved either algebraically or by TESTing VALUES. We're told that, in 1998, profits were 10% of revenues.... Let's TEST: 1998 Revenues=$100
Profits = $10 Next we're told that, in 1999, revenue FELL by 20%, but profits were 15% of revenues. Using the numbers from 1998 (above), we end up with... 1999 Revenues =$80
99--80--12$--15%(80 since revenue fell by 20%) x=12/10*100 x=12*10 x=120% _________________ Got Q42,V17 Target#01 Q45,V20--April End Director Joined: 12 Nov 2016 Posts: 695 Location: United States Schools: Yale '18 GMAT 1: 650 Q43 V37 GRE 1: Q157 V158 GPA: 2.66 Re: In 1998 the profits of company N were 10 percent of revenues. In 1999, [#permalink] ### Show Tags 21 Jun 2017, 04:45 Bunuel wrote: In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998? A. 80% B. 105% C. 120% D. 124.2% E. 138% We can apply a few formulas to solve this problem$100(.1) = $10 profit in 1998$100(.8)(.15) = $12 profit in 1999 new-old/ old =$12-$10/$10

120%

Thus
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Re: In 1998 the profits of company N were 10 percent of revenues. In 1999,  [#permalink]

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21 Jan 2019, 20:34
Bunuel wrote:
In 1998 the profits of company N were 10 percent of revenues. In 1999, the revenues of company N fell by 20 percent, but profits were 15 percent of revenues. The profits in 1999 were what percent of the profits in 1998?

A. 80%
B. 105%
C. 120%
D. 124.2%
E. 138%

We can let the revenues in 1998 = 100. Thus, the profits in 1998 = 100 x 0.1 = 10, the revenues in 1999 = 100 x 0.8 = 80, and the profits in 1999 = 80 x 0.15 = 12. Therefore, the profits in 1999 were 12/10 x 100 = 120 percent of the profits in 1998.

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Re: In 1998 the profits of company N were 10 percent of revenues. In 1999,   [#permalink] 21 Jan 2019, 20:34
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