A certain financial institution reported that its assets totaled $2,37

Question

A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013%

B. 0.0013%

C. 0.013%

D. 0.13%

E. 1.3%

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Official Answer

E

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ScottTargetTestPrep · Accepted Answer

The percentage held in cash is:

31,724.54/2,377,366.30/ x 100

We can round 31,724.54 to 32,000 and round 2,377,366.30 to 2,400,000, and we have:

32,000/2,400,000 x 100

32/2,400 x 100

32/24

4/3

1.333...

The closest answer choice is 1.3.

Answer: E

BrentGMATPrepNow · Answer

Since the answer choices are so spread apart, we can use some approximations. 
Let's round $2,377,366.30 UP to $2,400,000

Now let's test some percents. 
 10%  of $2,400,000 is  $240,000  
 1%  of $2,400,000 is  $24,000

Since $31,724.54 is BETWEEN  $24,000  and  $240,000  , we can conclude that the desired percent must be BETWEEN  1%  and  10%

Only answer choice E is between  1%  and  10%

Answer: E

Cheers,
Brent

generis · Answer

(  Cash/Total assets * 100  ) = percent of assets held in cash

Round the numbers. All that matters is where the decimal point lands 
30,000 = 31,724.54
2,300,000 = 2,377,366.30

Percent of assets held in cash:   \frac{30,000}{2,300,00} * 100

\frac{3 * 10^4}{23 * 10^5} * 100

= (.13 x 10 ^{-1} ) x 100

= .013 x 100 = 1.3%

Answer E

Skywalker18 · Answer

Total assets = 2,377,366.30$ = 23*10^5
Cash reserves = 31,724 = 31*10^3

percent of the reported assets that were held in cash on that day = 31*10^3/(23*10^5) *100%
=31/23 = 1.3

Answer E

pikolo2510 · Answer

10% is 237736.6630
1% is 23773.6630

If you see 31724 is near to 23773.66 i.e. it has to be above 1% but less than 2% (Because 2% would mean 23773.66*2 that is more than 31724)

The only option in this range is E. You can solve within 30 seconds

MathRevolution · Answer

Assets totaled: $2,377,366.30 ≈ $2,377,365

Cash: $31,724.54 ≈$31,725

Approximately what percent of the reported assets was held in cash on that day

=>  \frac{31,725 }{ 2,77,365}  * 100

=> 1.3

Answer E

Vinodhini1803 · Answer

10 sec approach. 
it is evident that multiplying denominator with 13 will give numerator. 
So all we have to see what power 10 has to be multiples. 
num / denom * 100 gives numerator >denominator
Hence option is greater than 1.
Hence E

Vegita · Answer

Hi  BrentGMATPrepNow

If you can then could please expand a little bit more on what you mean by this
 ?

BrentGMATPrepNow · Answer

I discuss this strategy starting at 0:45 in this video: https://www.gmatprepnow.com/module/gene ... video/1111

ueh55406 · Answer

Since the question is kind enough to ask  approximate  value.

assume:  2,377,366.30 = 2* 10^6  $

and  $31,724.54= 30,000  $

it's asking a is what % of b?

30,000= x/100* 2*10^6 
 x= 30,000*100/2*10^6 
 x= 3* 10^6/2* 10^6

we're left with 3/2:  1.5%  closest approximation=  1.3% . E is our answer.

ThatDudeKnows · Answer

$2,377,366.30? Nahhhhh, $2,400,000.
1% of that is $24,000.
The cash amount is more than that, so we need an answer choice that's greater than 1%.

Answer choice E.

ThatDudeKnowsBallparking

$!vakumar.m · Answer

instead of solving - pay attention to the options

clearly numerator is greater than denominator and each has 9 digits i.e. 3172454*100 / 237736630
so after division we get 1.x, where x is 3 - if we compare all the options
hence E

also by estimation
31724.54 ~ 32k
2377366 ~ 2400k
therefore, (32k*100/2400k ) = 1.33
E

Rainman91 · Answer

Since this was a 700 level question, and GMAT DOES NOT require us to do tedious math, rather use logic instead, I wrote the numbers WITH the Formula without even estimating.

First checked the answer choices for clues.

Wrote down formula: $31,724.54/2,377,366.30 x 100 (Percent conversion formula)

Instantly the 31k turns into 3.1M/2.3M.

2 MUST go into 3 ONE time. Only answer choice.

GMATCoachBen · Answer

Video solution here:

https://www.youtube.com/watch?v=MFgYop7fBtY

GMATkid1997 · Answer

Kindly request to format the AC. Behind every number, in the OG, there is a "%" sign

Bunuel · Answer

_________________
 Done. Thank you.

bumpbot · Answer

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A certain financial institution reported that its assets totaled $2,37

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A certain financial institution reported that its assets totaled $2,37

Prep Toolkit

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