Last visit was: 13 Jul 2025, 23:45 It is currently 13 Jul 2025, 23:45
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Close
Request Expert Reply
Confirm Cancel
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 13 July 2025
Posts: 102,593
Own Kudos:
Given Kudos: 98,178
Products:
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 102,593
Kudos: 741,169
 [45]
2
Kudos
Add Kudos
43
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
brains
Joined: 30 May 2017
Last visit: 22 Sep 2024
Posts: 93
Own Kudos:
127
 [17]
Given Kudos: 169
Location: India
Concentration: Finance, Strategy
GPA: 3.73
WE:Engineering (Consulting)
Products:
15
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
avatar
Krish728
Joined: 24 Jun 2019
Last visit: 12 Sep 2022
Posts: 14
Own Kudos:
15
 [7]
Given Kudos: 29
Posts: 14
Kudos: 15
 [7]
7
Kudos
Add Kudos
Bookmarks
Bookmark this Post
General Discussion
User avatar
CareerGeek
Joined: 20 Jul 2017
Last visit: 09 Jul 2025
Posts: 1,295
Own Kudos:
4,079
 [3]
Given Kudos: 162
Location: India
Concentration: Entrepreneurship, Marketing
GMAT 1: 690 Q51 V30
WE:Education (Education)
GMAT 1: 690 Q51 V30
Posts: 1,295
Kudos: 4,079
 [3]
1
Kudos
Add Kudos
2
Bookmarks
Bookmark this Post
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

Total price reduce after 2 years = 60% of purchase price = 60% of 8000
= 4800 $

Market value after 2 years = 8000 - 4800
= 3200 $

Option C

Posted from my mobile device
User avatar
Archit3110
User avatar
Major Poster
Joined: 18 Aug 2017
Last visit: 13 July 2025
Posts: 8,348
Own Kudos:
4,825
 [2]
Given Kudos: 243
Status:You learn more from failure than from success.
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1: 545 Q79 V79 DI73
GPA: 4
WE:Marketing (Energy)
GMAT Focus 1: 545 Q79 V79 DI73
Posts: 8,348
Kudos: 4,825
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

MV decreased by 30% each year so per year decrease ; in two years net decrease 60%;
8000*.4 ; 3200
IMO C
User avatar
ScottTargetTestPrep
User avatar
Target Test Prep Representative
Joined: 14 Oct 2015
Last visit: 13 Jul 2025
Posts: 21,091
Own Kudos:
Given Kudos: 296
Status:Founder & CEO
Affiliations: Target Test Prep
Location: United States (CA)
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 21,091
Kudos: 26,151
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Dillesh4096
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800


Each year, the constant amount of the decrease in the machine’s market value will be:

8,000 x 0.3 = $2,400

Therefore, its value after two years will be:

8,000 - 2 * 2,400 = $3,200

Answer: C
User avatar
Cellchat
Joined: 16 Jan 2020
Last visit: 24 Nov 2020
Posts: 34
Own Kudos:
Given Kudos: 30
GMAT 1: 640 Q48 V28
GMAT 1: 640 Q48 V28
Posts: 34
Kudos: 61
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Purchase price = 1982 market value = $8000
1983 market value = 8000 - 30%*8000
1984 market value = 8000 - 30%*8000 - 30%*8000
= 8000(1 - 0.3 - 0.3)
= 8000(0.4)
= 3200
= (C)
User avatar
TheNightKing
Joined: 18 Dec 2017
Last visit: 20 Mar 2024
Posts: 1,139
Own Kudos:
Given Kudos: 421
Location: United States (KS)
GMAT 1: 600 Q46 V27
GMAT 1: 600 Q46 V27
Posts: 1,139
Kudos: 1,226
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

Purchase Price = 8000$

Decrease every year of it's purchase price = 2400$ = 0.3*8000

The value decreased after 2 years will be 4800$. The actual value will be 8000-4800 = 3200$

Answer C
User avatar
bv8562
Joined: 01 Dec 2020
Last visit: 11 Jul 2025
Posts: 437
Own Kudos:
464
 [2]
Given Kudos: 359
GMAT 1: 680 Q48 V35
GMAT 1: 680 Q48 V35
Posts: 437
Kudos: 464
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Krish728
Archit3110
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

MV decreased by 30% each year so per year decrease ; in two years net decrease 60%;
8000*.4 ; 3200
IMO C

Hi,
if we do like this. Answer is different.
MV for first year = 8000*0.7 = 5600
MV for second year = 5600*0.7 = 3920

Can you please explain why?

Because the value of the Machine is decreased by 30% OF ITS PURCHASE PRICE EACH YEAR i.e

30% of 8000 = 2400
Therefore, each year it is decreased by 2400

so, 8000-2*2400 = 3200 (C)

If the question had stated that each year its value is decreased by 30%. In that case 3920 would have been the answer.


Thanks
User avatar
Archit3110
User avatar
Major Poster
Joined: 18 Aug 2017
Last visit: 13 July 2025
Posts: 8,348
Own Kudos:
Given Kudos: 243
Status:You learn more from failure than from success.
Location: India
Concentration: Sustainability, Marketing
GMAT Focus 1: 545 Q79 V79 DI73
GPA: 4
WE:Marketing (Energy)
GMAT Focus 1: 545 Q79 V79 DI73
Posts: 8,348
Kudos: 4,825
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Question says price decrease each year 30 % of its purchase value 8000
1st year decrease .7*8000:5600
Net price decrease is 8000-5600:2400
So in 2 years price decrease is 2400*2 : 4800
Price would be 8000-4800: 3200

Also note this price decrease 4800 is 4800/8000:60% decrease
@bv8562

The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800[/quote]

MV decreased by 30% each year so per year decrease ; in two years net decrease 60%;
8000*.4 ; 3200
IMO C[/quote]

Hi,
if we do like this. Answer is different.
MV for first year = 8000*0.7 = 5600
MV for second year = 5600*0.7 = 3920

Can you please explain why?

Because the value of the Machine is decreased by 30% OF ITS PURCHASE PRICE EACH YEAR i.e

30% of 8000 = 2400
Therefore, each year it is decreased by 2400

so, 8000-2*2400 = 3200 (C)

If the question had stated that each year its value is decreased by 30%. In that case 3920 would have been the answer.


Thanks[/quote][/quote]

Posted from my mobile device
User avatar
IrascibleDoctor
Joined: 12 Jul 2024
Last visit: 13 Jun 2025
Posts: 8
Own Kudos:
Given Kudos: 4
Posts: 8
Kudos: 2
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Krish728
Archit3110
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

MV decreased by 30% each year so per year decrease ; in two years net decrease 60%;
8000*.4 ; 3200
IMO C

Hi,
if we do like this. Answer is different.
MV for first year = 8000*0.7 = 5600
MV for second year = 5600*0.7 = 3920

Can you please explain why?

Thanks

It’s not successive in drop means that say after decrement of 30% say the price is x
Now the next decrement is not on this x it’s again on the purchase price so together it’s 60% = purchase30%+purchase30%
User avatar
sghosh1096
Joined: 21 May 2025
Last visit: 13 July 2025
Posts: 9
Own Kudos:
Given Kudos: 150
Location: India
Posts: 9
Kudos: 1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
The question statement is

The market value of a certain machine decreased by 30 percent of its purchase price each year.

so the value decreases by 30% of 8000 every year, not 30% of 8000 in the first year and then another 30% of the valuation of the product after first year.
hence the value decrease is constant, 30%*8000=2400 every year.
so answer would be 8000-2400(for first year)-2400(for second year)=3200
Krish728
Archit3110
Bunuel
The market value of a certain machine decreased by 30 percent of its purchase price each year. If the machine was purchased in 1982 for its market value of $8,000, what was its market value two years later?

(A) $8,000
(B) $5,600
(C) $3,200
(D) $2,400
(E) $800

MV decreased by 30% each year so per year decrease ; in two years net decrease 60%;
8000*.4 ; 3200
IMO C

Hi,
if we do like this. Answer is different.
MV for first year = 8000*0.7 = 5600
MV for second year = 5600*0.7 = 3920

Can you please explain why?

Thanks
Moderators:
Math Expert
102640 posts
PS Forum Moderator
691 posts