GMAT Changed on April 16th - Read about the latest changes here

 It is currently 24 May 2018, 16:41

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Rate of inflation

Author Message
Director
Joined: 25 Oct 2006
Posts: 594

### Show Tags

25 Sep 2008, 22:39
1
KUDOS
when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?

A. The rate of inflation has risen

B. The investment in question is becoming less profitable

C. The investment in question is less profitable than the most profitable investment available

D. The rate of return on the most profitable investment available has declined

E. There has been a change in which particular investment happens to be the most profitable

Can we discuss?

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________

If You're Not Living On The Edge, You're Taking Up Too Much Space

Manager
Joined: 12 May 2006
Posts: 164

### Show Tags

25 Sep 2008, 22:43
IMO B.
Manager
Joined: 24 Sep 2008
Posts: 90

### Show Tags

25 Sep 2008, 23:04
(A)
_________________

Kick GMAT ass

Intern
Joined: 22 Jul 2008
Posts: 39

### Show Tags

25 Sep 2008, 23:34
priyankur_saha@ml.com wrote:
when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?
A. The rate of inflation has risen
B. The investment in question is becoming less profitable
C. The investment in question is less profitable than the most profitable investment available
D. The rate of return on the most profitable investment available has declined
E. There has been a change in which particular investment happens to be the most profitable

Can we discuss?

IMO "C"
"A" is not possible because nowhere the author has mentioned a link b/n inflation rise/decline
he/she just talks about the rate of inflation
"B" could be the answer but if you "C" you will find that "C" can definitly be derived from the question "most profitable" Vs "investment in question "
Similarly i am not able to find a link of "D" and "E" with the question
_________________

Nik...
Score Big
time is Less WORK is more

Director
Joined: 25 Oct 2006
Posts: 594

### Show Tags

25 Sep 2008, 23:42
1
KUDOS
nikhiljain05:
The premise states that in such circumstance the value of a particular investment declines by more than that percentage.

Therefore the percentage was ok before and now it declined from its previous mark, Can't we say it was profitable before and now became less profitable? Obviously, if rate of return declines, the profitability will diminish consequently.
_________________

If You're Not Living On The Edge, You're Taking Up Too Much Space

Manager
Joined: 27 Aug 2008
Posts: 135

### Show Tags

26 Sep 2008, 00:50
priyankur_saha@ml.com wrote:
when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?

A. The rate of inflation has risen

B. The investment in question is becoming less profitable

C. The investment in question is less profitable than the most profitable investment available

D. The rate of return on the most profitable investment available has declined

E. There has been a change in which particular investment happens to be the most profitable

Can we discuss?

IMO D.

Decline = (RoI - RoR)/RoR * 100

If RoI doesnt increase any further, & % has increased that means the denominator i.r. RoR has reduced. Simple math sense!
Intern
Joined: 22 Jul 2008
Posts: 39

### Show Tags

26 Sep 2008, 01:00
1
KUDOS
priyankur_saha@ml.com wrote:
nikhiljain05:
The premise states that in such circumstance the value of a particular investment declines by more than that percentage.

Therefore the percentage was ok before and now it declined from its previous mark, Can't we say it was profitable before and now became less profitable? Obviously, if rate of return declines, the profitability will diminish consequently.

For priyankur_saha@ml.com
it says that a "value of a particular investment"
not "% of highest profitable investment"
so only the value for that particular investment has decreased
_________________

Nik...
Score Big
time is Less WORK is more

VP
Joined: 17 Jun 2008
Posts: 1482

### Show Tags

26 Sep 2008, 01:39
Another C with the similar explanation as below.

nikhiljain05 wrote:
priyankur_saha@ml.com wrote:
nikhiljain05:
The premise states that in such circumstance the value of a particular investment declines by more than that percentage.

Therefore the percentage was ok before and now it declined from its previous mark, Can't we say it was profitable before and now became less profitable? Obviously, if rate of return declines, the profitability will diminish consequently.

For priyankur_saha@ml.com
it says that a "value of a particular investment"
not "% of highest profitable investment"
so only the value for that particular investment has decreased
Senior Manager
Joined: 06 Apr 2008
Posts: 394

### Show Tags

26 Sep 2008, 04:22
priyankur_saha@ml.com wrote:
when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?

A. The rate of inflation has risen

B. The investment in question is becoming less profitable

C. The investment in question is less profitable than the most profitable investment available

D. The rate of return on the most profitable investment available has declined

E. There has been a change in which particular investment happens to be the most profitable

Can we discuss?

IMO C)
Manager
Joined: 14 Jan 2006
Posts: 88
Schools: HKUST

### Show Tags

26 Sep 2008, 08:29
clear C
VP
Joined: 05 Jul 2008
Posts: 1342

### Show Tags

26 Sep 2008, 08:38
priyankur_saha@ml.com wrote:
when the rate of inflation exceeds the rate of return on the most profitable investment available , the difference between the two rates will be the percentage, by which,at a minimum, the value of any investment will decline. If in such circumstance the value of a particular investment declines by more than that percentage, it must be true that ................

Which one logically completes the argument?

A. The rate of inflation has risen

B. The investment in question is becoming less profitable

C. The investment in question is less profitable than the most profitable investment available

D. The rate of return on the most profitable investment available has declined

E. There has been a change in which particular investment happens to be the most profitable

Can we discuss?

Holly Molly. All over the place.

B is good but C is the best. the word minimum is the key. Any investment will lose the minimum X percent. But if there are investments that decline by X+N percent it must be true that such investments are less profitable than the most profitable investment available.
Director
Joined: 25 Oct 2006
Posts: 594

### Show Tags

26 Sep 2008, 22:03
1
KUDOS
Thanks of the explanations. OA is C indeed.

--== Message from GMAT Club Team ==--

This is not a quality discussion. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________

If You're Not Living On The Edge, You're Taking Up Too Much Space

Re: Rate of inflation   [#permalink] 26 Sep 2008, 22:03
Display posts from previous: Sort by

# Rate of inflation

Moderator: chetan2u

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.