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Status: Nothing comes easy: neither do I want.
Joined: 12 Oct 2009
Posts: 2761

Kudos [?]: 1886 [0], given: 235

Location: Malaysia
Concentration: Technology, Entrepreneurship
Schools: ISB '15 (M)
GMAT 1: 670 Q49 V31
GMAT 2: 710 Q50 V35
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m07#21 [#permalink]

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New post 11 Jul 2010, 03:56
If a 5-year construction project is structured to double the investment every succeeding year, what percentage of the total cost was invested in the first year?

* 12.5%
* 10%
* 8.25%
* 5%
* 3%

Though I got the right answer but I m not convinced with the official explanation.

[Reveal] Spoiler: OE
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%.

[Reveal] Spoiler: my explanation
In first year - x
After 1st year - 2x
After 2nd year - 4x
After 3rd year - 8x
After 4th year - 16x
After 5th year - 32x

so %age = 1/32 * 100 = approx 3%

Bunnel letme know if my method is wrong.

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Kudos [?]: 1886 [0], given: 235

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Joined: 06 Oct 2009
Posts: 68

Kudos [?]: 35 [1], given: 5

Re: m07#21 [#permalink]

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New post 11 Jul 2010, 18:13
This post received
Gurpreet, yes your method is wrong because you shouldn't calculate after 5th year(by which you actually including the 6th year investment also)

Also, to get the total investment you have to add all the years' investment.

Hope you are clear
Posted from my mobile device

+1 kudos me if this is of any help...

Kudos [?]: 35 [1], given: 5

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Affiliations: The Earth organization, India
Joined: 25 Dec 2010
Posts: 190

Kudos [?]: 15 [0], given: 12

WE 1: SAP consultant-IT 2 years
WE 2: Entrepreneur-family business 2 years
Re: m07#21 [#permalink]

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New post 02 Jun 2011, 09:56
I partially agree with gurpreet

if we start with x or 1.

the amount after 1st year = 2x or 2

after 5th year = 32x or 32

is it not so ?

Cheers !!

Quant 47-Striving for 50
Verbal 34-Striving for 40

Kudos [?]: 15 [0], given: 12

Re: m07#21   [#permalink] 02 Jun 2011, 09:56
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