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The cost of painting a wall increases by a fixed percentage each year.

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Joined: 02 Sep 2009
Posts: 54376
The cost of painting a wall increases by a fixed percentage each year.  [#permalink]

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10 Apr 2019, 23:38
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Difficulty:

15% (low)

Question Stats:

95% (01:52) correct 5% (00:09) wrong based on 19 sessions

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The cost of painting a wall increases by a fixed percentage each year. In 1970, the cost was $2,000; and in 1979, it was$3,600. What was the cost of painting in 1988?

(A) $1,111 (B)$2,111
(C) $3,600 (D)$6240
(E) $6480 _________________ Manager Joined: 01 May 2017 Posts: 82 Location: India Re: The cost of painting a wall increases by a fixed percentage each year. [#permalink] Show Tags 11 Apr 2019, 01:51 The cost of painting a wall increases by a fixed percentage each year. In 1970, the cost was$2,000; and in 1979, it was $3,600. What was the cost of painting in 1988? (A)$1,111
(B) $2,111 (C)$3,600
(D) $6240 (E)$6480

Initial price = 2000
1979's price = 3600

let 'x' % is the increase each year => $$(1+x/100)^9 * 2000 = 36000$$
$$(1+x/100)^9$$= 1.8

1988's price = $$(1+x/100)^9*3600$$
= 1.8*3600
= 6480

Option E is correct
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Re: The cost of painting a wall increases by a fixed percentage each year.  [#permalink]

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14 Apr 2019, 18:49
Bunuel wrote:
The cost of painting a wall increases by a fixed percentage each year. In 1970, the cost was $2,000; and in 1979, it was$3,600. What was the cost of painting in 1988?

(A) $1,111 (B)$2,111
(C) $3,600 (D)$6240
(E) $6480 Since 3600/2000 = 36/20 = 18/10 = 1.8, the cost of painting a wall increased by 80% in the 9 years from 1970 to 1979. Therefore, in another 9 years (from 1979 to 1988), the cost would increase by another 80% to 3600 x 1.8 =$6480.

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Re: The cost of painting a wall increases by a fixed percentage each year.   [#permalink] 14 Apr 2019, 18:49
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