GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 24 Jan 2020, 18:40

### 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

### Show Tags

01 Nov 2019, 06:28
00:00

Difficulty:

95% (hard)

Question Stats:

19% (03:57) correct 81% (02:59) wrong based on 64 sessions

### HideShow timer Statistics

The GDP of a country is $13.8 billion, and the total production of one of its industries is$3.3 billion. If the GDP were to grow by 5% per year in the future, which of the following would be the MINIMUM required annual growth in this industry that would it represent more than half of the GDP in ten years?

A. 10%
B. 15%
C. 20%
D. 25%
E. 30%

Are You Up For the Challenge: 700 Level Questions

_________________
GMAT Club Legend
Joined: 18 Aug 2017
Posts: 5725
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)

### Show Tags

02 Nov 2019, 04:06
2
should be solved like this. i'm not sure how we gonna solve it without calculator.

$$0.5*[13.8*(1.05)^{10}]$$ < 3.3 $$(1+\frac{x}{100})^{10}$$

$$[2.1]^{\frac{1}{10}}*1.05 < (1+\frac{x}{100})$$

$$1.07*1.05< 1+\frac{x}{100}$$

Archit3110 wrote:
Bunuel wrote:
The GDP of a country is $13.8 billion, and the total production of one of its industries is$3.3 billion. If the GDP were to grow by 5% per year in the future, which of the following would be the MINIMUM required annual growth in this industry that would it represent more than half of the GDP in ten years?

A. 10%
B. 15%
C. 20%
D. 25%
E. 30%

Are You Up For the Challenge: 700 Level Questions

giving a try not sure though of the solution

total GDP is 13.8
and production = 3.3
annual growth of GDP = 13.8*1.05 ; 14.49 ~ 14.5
i.e for every increase in GDP the production rate has to increase by 14.5/3.3 = 4.39
i.e % change of ~33% but question has asked for MINIMUM required annual growth in this industry that would it represent more than half of the GDP in ten years
IMO E. 30% is what the industry will have to gain to match >= half of GDP rate
Senior Manager
Joined: 21 Jun 2017
Posts: 396
Location: India
Concentration: Finance, Economics
Schools: IIM
GMAT 1: 620 Q47 V30
GPA: 3
WE: Corporate Finance (Commercial Banking)

### Show Tags

30 Dec 2019, 03:53
Current GDP = $13.8 billion = ~$14 billion

Current total production of one industry = $3.3 billion = ~$3.5 billion, about 25% of current GDP.

GDP and the total production grow at an annual factor of 1.05 and x, respectively.

In order to increase from ~25% to >50% of the GDP in 10 years, the total production needs to double in 10 years. Thus,

(x/1.05)^9 >=2
--> x/1.05 >=2^(1/9)
--> x/1.05 >=~1.1
--> x >= 1.15

I just approximate that:
1.1^2 = 1.1 * 1.1 = 1.2
1.1^4 = 1.1^2 * 1.1^2 = 1.2*1.2 = 1.4
1.1^8 = 1.1^4 * 1.1^4 = 1.4*1.4 = 1.96
So 1.1^9 must be greater than 2. Therefore, 2^(1/9) =~1.1

Posted from my mobile device
Manager
Joined: 30 Oct 2019
Posts: 95
Location: United Kingdom
Concentration: General Management, Technology
GPA: 4

### Show Tags

02 Jan 2020, 10:02
AnirudhaS wrote:
Interested to know how we calculate$$2^\frac{1}{9}$$

Plz someone explain??

Posted from my mobile device