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# M07-21

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Math Expert
Joined: 02 Sep 2009
Posts: 46297

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16 Sep 2014, 00:35
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3
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Difficulty:

45% (medium)

Question Stats:

67% (01:13) correct 33% (01:17) wrong based on 54 sessions

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If a 5-year construction project is structured to double the investment every succeeding year, approximately what percentage of the total cost was invested in the first year?

A. 12.5%
B. 10%
C. 8.25%
D. 5%
E. 3%

_________________
Math Expert
Joined: 02 Sep 2009
Posts: 46297

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16 Sep 2014, 00:35
Official Solution:

If a 5-year construction project is structured to double the investment every succeeding year, approximately what percentage of the total cost was invested in the first year?

A. 12.5%
B. 10%
C. 8.25%
D. 5%
E. 3%

Let's say we invested $10 the first year. The second year it will be$20 more, third - $40 more, fourth -$80 more, and fifth - $160 more. Now, add them: 10+20+40+80+160 = 310. So, the original investment was $$\frac{10}{310}$$ or $$\frac{1}{31}$$ or about 3%. Answer: E _________________ Current Student Joined: 14 May 2014 Posts: 44 Schools: Broad '18 (WA) GMAT 1: 700 Q44 V41 GPA: 3.11 Re: M07-21 [#permalink] ### Show Tags 28 Jul 2015, 09:36 Bunuel wrote: Official Solution: If a 5-year construction project is structured to double the investment every succeeding year, approximately what percentage of the total cost was invested in the first year? A. 12.5% B. 10% C. 8.25% D. 5% E. 3% Let's say we invested$10 the first year. The second year it will be $20 more, third -$40 more, fourth - $80 more, and fifth -$160 more. Now, add them: 10+20+40+80+160 = 310. So, the original investment was $$\frac{10}{310}$$ or $$\frac{1}{31}$$ or about 3%.

hi..!

this question could be interpreted as follows also..?

say first year we invested 10$so 2nd year : 20$

Now 3rd year we invest double the invested amount : so it could be 2*(10+20) = 60 $. i assumed it this way, solved it and then saw that there were no matching choices. So had to do it again in the above mentioned manner.. Current Student Joined: 28 Jul 2014 Posts: 13 Re: M07-21 [#permalink] ### Show Tags 31 Oct 2015, 19:51 I interpreted it as follows: if A is initial investment, then after 5 years, this will compound to A*2^5. i.e. doubling every year for 5 years. Then we have A/A*2^5 = 1/32 = 3.125% ~ = 3% Intern Joined: 18 Oct 2015 Posts: 2 GMAT 1: 720 Q47 V41 GPA: 3.98 Re M07-21 [#permalink] ### Show Tags 17 Dec 2015, 10:44 1 I think this is a poor-quality question and I agree with explanation. the question is ambiguous and it is difficult to understand what is asked. Intern Joined: 17 May 2016 Posts: 30 GMAT 1: 740 Q46 V46 Re: M07-21 [#permalink] ### Show Tags 06 Aug 2016, 09:44 As the investment is doubled every year, if you want to get the initial amount you have to divide final by 2, and repeat 5 times $$100 * 2^-5$$ $$\frac{100}{2^5}$$ $$\frac{100}{32}$$ more or less 3% Intern Joined: 20 Jul 2016 Posts: 2 Re: M07-21 [#permalink] ### Show Tags 11 Aug 2016, 14:49 I think this is a poor quality question. The wording makes it sound as though every year it is providing a return of double the amount invested. Plus, "cost" and "investment" are used interchangeably. Good concept, bad wording. Manager Joined: 23 Nov 2016 Posts: 76 Location: United States (MN) GMAT 1: 760 Q50 V42 GPA: 3.51 Re: M07-21 [#permalink] ### Show Tags 07 Feb 2017, 21:16 riyazgilani wrote: Bunuel wrote: Official Solution: If a 5-year construction project is structured to double the investment every succeeding year, approximately what percentage of the total cost was invested in the first year? A. 12.5% B. 10% C. 8.25% D. 5% E. 3% Let's say we invested$10 the first year. The second year it will be $20 more, third -$40 more, fourth - $80 more, and fifth -$160 more. Now, add them: 10+20+40+80+160 = 310. So, the original investment was $$\frac{10}{310}$$ or $$\frac{1}{31}$$ or about 3%.

hi..!

this question could be interpreted as follows also..?

say first year we invested 10$so 2nd year : 20$

Now 3rd year we invest double the invested amount : so it could be 2*(10+20) = 60 \$.

i assumed it this way, solved it and then saw that there were no matching choices. So had to do it again in the above mentioned manner..

Although I got this correct, I agree with this dude. It would be clearer if the question stated something along the lines of, "Over a 5 year period, if the amount invested in a construction project each year is double the previous year's amount, approximately what percentage of the total cost was invested in the first year?"
Intern
Joined: 07 Sep 2016
Posts: 1
Location: India
GMAT 1: 640 Q47 V30
GPA: 3.44

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16 Sep 2017, 06:23
I think this is a poor-quality question and the explanation isn't clear enough, please elaborate. I am not sure if the terms such as, 'cost' & 'investment' are interchangeable.
Intern
Joined: 07 May 2017
Posts: 3
GMAT 1: 660 Q49 V33
GMAT 2: 710 Q49 V38
GPA: 3.6
WE: Information Technology (Consulting)

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08 Feb 2018, 21:59
I think this is a poor-quality question and I agree with explanation. The language used is difficult to understand.
Manager
Joined: 17 Jan 2017
Posts: 63

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11 May 2018, 07:02
I got it right but awkward question. Is every year a "succeeding year"? :/
Intern
Joined: 09 Jan 2018
Posts: 21

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06 Jun 2018, 03:39
I think this is a poor-quality question and I agree with explanation. While the concept testing is nice, the question wording is very unclear.
Re M07-21   [#permalink] 06 Jun 2018, 03:39
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# M07-21

Moderators: chetan2u, Bunuel

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