starter question 2

Question

hi 
I am not convinced with the answer to this question in Barrons

Question - 
If the value of an investment triples each year, what pecernt of its value today will the invetsment be worth in 4 years ?

Answer - 8100%

I think the correct answer should be 8000% .

Could someone please confirm and explain .

Thank you in advance

sudish · Answer

Hi I'm not sure how you arrived at 8000%, as you have not mentioned it in your post. However, I'll provide my views on this question. Also, could you please post all the given answer options for any/all questions going forward so that others know what options were provided in the question? Here's the explanation: It's given that the value of a certain investment triples each year. Let's say that the value of the investment this year is 'X'. This is nothing but the available whole i.e. 100% Firstly, since the investment triples each year, at the end of the first year, the value of the investment would be 3 times its original value i.e. 3X i.e. 300% Now, the value will again triple at the end of the second year such that its value at the end of the second year would be 3 x 3X = 9X i.e. 3 x 300% = 900% Similarly, the value will triple again at the end of the third year to: 3 x 9X = 27X i.e. 3 x 900% = 2700% Finally, at the end of fourth year, the value would be: 3 x 27X = 81X i.e. 3 x 2700% = 8100% This is the correct answer choice. Hope this helps!

Cheers! Sudish

sandeeepsharma · Answer

for me also 8100% is the correct answer

morya003 · Answer

Dear Both

Thank you for your help.

This is question I found in barron as an example so they have not provided any choices.

This is how I calculated 8000 %.

The value today is 100, after 1 year = 300, after 2 years = 900, after 3 years = 2700, after 4 years = 8100.
now as per the question
what % of 100(value today) will the investment be worth in 4 years = calculation for % increase
=(8100-100)/ value today = 8000%

The investment will be worth 8000% of 100 in 4 years. :oops:

d3thknell · Answer

i think you are getting confused by wordplay of the question. what you are calculating is "% increase in value over the period of 12 years" . give some time to the question im sure u will get it

starter question 2

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards