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# M17-26

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Math Expert
Joined: 02 Sep 2009
Posts: 49964

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16 Sep 2014, 01:02
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Difficulty:

15% (low)

Question Stats:

81% (01:09) correct 19% (01:27) wrong based on 201 sessions

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In 2001 a house cost 20% more than in 2000 and in 2002 it cost 25% less than in 2000. If the house cost $60,000 in 2002, how much did it cost in 2001 ? A.$40,000
B. $75,000 C.$80,000
D. $96,000 E.$100,000

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Math Expert
Joined: 02 Sep 2009
Posts: 49964

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16 Sep 2014, 01:02
Official Solution:

In 2001 a house cost 20% more than in 2000 and in 2002 it cost 25% less than in 2000. If the house cost $60,000 in 2002, how much did it cost in 2001 ? A.$40,000
B. $75,000 C.$80,000
D. $96,000 E.$100,000

Denote $$x$$ as the price of the house in 2000. Then its price in 2001 is $$1.2x$$ and its price in 2002 is $$0.75x$$. It follows from the stem that $$0.75x = 60,000$$ from where $$x = 80,000$$. The price of the house in 2001 $$= 1.2x = 1.2*80,000 = 96,000$$.

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Joined: 14 Oct 2012
Posts: 172

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28 Mar 2017, 12:32
1
There is NO substitute of READING the question CORRECTLY.
I was over confident and reckless and thus did see that the question was stating "in 2002 it cost 25% less than in 2000" and NOT "in 2002 it cost 25% less than in 2001". So please don't make mistake as i did.
Thanks
Senior Manager
Joined: 08 Jun 2015
Posts: 475
Location: India
GMAT 1: 640 Q48 V29
GMAT 2: 700 Q48 V38
GPA: 3.33

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16 May 2017, 07:10
Assume the cost of house in 2000 to be x. In 2001 to be 1.2x and in 2002 to be 0.75x. Now it is given that 0.75x=60,000. Now we are required to find out 1.2x. The price in 2001 comes out to be 96,000. Hence option D.
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Manager
Joined: 25 Jul 2017
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16 Jun 2018, 07:39
In 2001 a house cost 20% more than in 2000 and in 2002 it cost 25% less than in 2000. If the house cost $60,000 in 2002, how much did it cost in 2001 ? A.$40,000
B. $75,000 C.$80,000
D. $96,000 E.$100,000

This type of question can be solved by taking base=100. It makes calculation simpler as below:
let price of house in 2000 = 100
=> in 2001 = 100*1.2= 120
=> in 2002 =100*0.75 =75
Now from question, it's given that 75=60,000
Therefore, 120 =(60000/75)*120= 96,000

Re: M17-26 &nbs [#permalink] 16 Jun 2018, 07:39
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# M17-26

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