GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 22 Aug 2019, 17:42

### 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

# The price of a left-handed widget increased 20 percent in 1981 and 10

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 57244
The price of a left-handed widget increased 20 percent in 1981 and 10  [#permalink]

### Show Tags

22 Feb 2018, 20:53
00:00

Difficulty:

45% (medium)

Question Stats:

65% (01:58) correct 35% (01:29) wrong based on 84 sessions

### HideShow timer Statistics

The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price?

(A) 40%

(B) 35%

(C) 30%

(D) 26%

(E) 24%

_________________
Senior PS Moderator
Joined: 26 Feb 2016
Posts: 3355
Location: India
GPA: 3.12
The price of a left-handed widget increased 20 percent in 1981 and 10  [#permalink]

### Show Tags

22 Feb 2018, 21:50
Bunuel wrote:
The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price?

(A) 40%

(B) 35%

(C) 30%

(D) 26%

(E) 24%

Assume the price of the left-handed widget to be $100 before 1981. In 1981 the price went up by 20% and the price went up by 20% in 1982 The cost of the left-handed widget in 1982 is 1.1*(1.2(100)) =$132

In order to restore the price to its pre-1981 price, we would need to
bring down the cost of $32, which is a decrease of $$\frac{32}{132}*100 = \frac{3200}{132} = 24$$%(Option E) _________________ You've got what it takes, but it will take everything you've got Current Student Joined: 07 Jan 2016 Posts: 1090 Location: India GMAT 1: 710 Q49 V36 Re: The price of a left-handed widget increased 20 percent in 1981 and 10 [#permalink] ### Show Tags 23 Feb 2018, 02:09 Bunuel wrote: The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price? (A) 40% (B) 35% (C) 30% (D) 26% (E) 24% 100 - 120 - 132 now 132 must decrease to 100 = 32/132 x 100 = 24% (E) imo Intern Joined: 18 Jul 2016 Posts: 34 Re: The price of a left-handed widget increased 20 percent in 1981 and 10 [#permalink] ### Show Tags 23 Feb 2018, 16:57 lets say the price was 100 pre-1981 < 1981 1981 1982 100 120 132 to bring back to original <1981 price % decrease = $$\frac{{change}}{{original value}}$$ * 100 = $$\frac{32}{132}$$ * 100 => $$< \frac{1}{4}$$ *100 => < 25% IMO E Manager Joined: 11 Feb 2017 Posts: 183 Re: The price of a left-handed widget increased 20 percent in 1981 and 10 [#permalink] ### Show Tags 24 Feb 2018, 02:11 pushpitkc wrote: Bunuel wrote: The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price? (A) 40% (B) 35% (C) 30% (D) 26% (E) 24% Assume the price of the left-handed widget to be$100 before 1981.

In 1981 the price went up by 20% and the price went up by 20% in 1982
The cost of the left-handed widget in 1982 is 1.1*(1.2(100)) = $132 In order to restore the price to its pre-1981 price, we would need to bring down the cost of$32, which is a decrease of $$\frac{32}{132}*100 = \frac{3200}{132} = 24$$%(Option E)

Hi ,

If u have used the formula of percent decrease i.e

Change / original

then why u used 132 as original and not 100?
Intern
Joined: 12 Feb 2018
Posts: 1
Re: The price of a left-handed widget increased 20 percent in 1981 and 10  [#permalink]

### Show Tags

26 Feb 2018, 15:38
rocko911 wrote:
pushpitkc wrote:
Bunuel wrote:
The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price?

(A) 40%

(B) 35%

(C) 30%

(D) 26%

(E) 24%

Assume the price of the left-handed widget to be $100 before 1981. In 1981 the price went up by 20% and the price went up by 20% in 1982 The cost of the left-handed widget in 1982 is 1.1*(1.2(100)) =$132

In order to restore the price to its pre-1981 price, we would need to
bring down the cost of $32, which is a decrease of $$\frac{32}{132}*100 = \frac{3200}{132} = 24$$%(Option E) Hi , If u have used the formula of percent decrease i.e Change / original then why u used 132 as original and not 100? (last-previous)/previous. Here, 132 is previous Sent from my iPhone using GMAT Club Forum mobile app Manager Joined: 04 Jun 2015 Posts: 79 Re: The price of a left-handed widget increased 20 percent in 1981 and 10 [#permalink] ### Show Tags 27 Feb 2018, 03:48 Bunuel wrote: The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price? (A) 40% (B) 35% (C) 30% (D) 26% (E) 24% Its E. Pre-1981 = 100 1981 = 120 [20 % increase] 1982 = 132 [10 % increase] % decrease from 1982 to Pre-1981 = $$\frac{100 - 132}{132}$$ = 32/132 ~ a little < 1/4 ~ 24 % _________________ Sortem sternit fortem! Intern Joined: 20 Dec 2017 Posts: 35 Location: Singapore Re: The price of a left-handed widget increased 20 percent in 1981 and 10 [#permalink] ### Show Tags 27 Feb 2018, 04:06 I find that throwing in some smart numbers will be helpful. Pre-1981 =$100
1981 = $100 x 1.2 =$120
1982 = $120 x 1.1 =$132

$$\frac{132-100}{132}*100 = \frac{32}{132}*100 = approx \frac{30}{130}*100 =$$ approx 23%

Nearest is (E) 24%
Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 7435
Location: United States (CA)
Re: The price of a left-handed widget increased 20 percent in 1981 and 10  [#permalink]

### Show Tags

28 Feb 2018, 11:10
Bunuel wrote:
The price of a left-handed widget increased 20 percent in 1981 and 10 percent in 1982. By approximately what percent would the price at the end of 1982 have to be decreased to restore the price of the widget to its pre-1981 price?

(A) 40%

(B) 35%

(C) 30%

(D) 26%

(E) 24%

We can let the original price = 100.

After the two increases the new price would be 1.2 x 1.1 x 100 = 132. We can let n = the percent decrease and create the equation:

(100 - n)/100 x 132 = 100

13,200 - 132n = 10,000

3,200 = 132n

24 ≈ n

_________________

# Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
122 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

Re: The price of a left-handed widget increased 20 percent in 1981 and 10   [#permalink] 28 Feb 2018, 11:10
Display posts from previous: Sort by