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

It is currently 21 Oct 2019, 13:34

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

The price of an item is reduced by $5.00, a 20-percent decrease.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Senior Manager
Senior Manager
User avatar
P
Status: Gathering chakra
Joined: 05 Feb 2018
Posts: 434
Premium Member
The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 27 Mar 2019, 17:18
1
3
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

68% (01:12) correct 32% (01:13) wrong based on 50 sessions

HideShow timer Statistics

The price of an item is reduced by $5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) $30.00
B) $25.00
C) $24.00
D) $20.00
E) $4.00
Manhattan Prep Instructor
User avatar
G
Joined: 04 Dec 2015
Posts: 832
GMAT 1: 790 Q51 V49
GRE 1: Q170 V170
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 27 Mar 2019, 18:04
energetics wrote:
The price of an item is reduced by $5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) $30.00
B) $25.00
C) $24.00
D) $20.00
E) $4.00


My very first thought was to work backwards. However, this isn't going to work here. The problem is that the answer choices represent the final price, rather than the original price that we'll be increasing and decreasing. The original price that we start with is unknown, so we can't really work backwards.

So, let's use some logical reasoning instead. $5 is 20 percent, or 1/5, of the original price. Therefore, the original price was 5 times this, or $25.

The price started at $25, and was reduced to $20. Finally, the $20 price is increased by 20 percent. 20 percent of $20 is 1/5 of $20, or $4. The final price is $24 and the answer is (C).
_________________
Image

Chelsey Cooley | Manhattan Prep | Seattle and Online

My latest GMAT blog posts | Suggestions for blog articles are always welcome!
Intern
Intern
avatar
B
Joined: 15 Mar 2019
Posts: 3
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 28 Mar 2019, 00:31
energetics wrote:
The price of an item is reduced by $5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) $30.00
B) $25.00
C) $24.00
D) $20.00
E) $4.00



At first, 20% discount amounts to 5$.
0.2x = 5$
Hence, x = 25$ (Initial Principal)
New Principal = 25 - 5 = 20$

After a 20% increment ; New Principal = 20$ + 4$ = 24$
OA:C
Senior Manager
Senior Manager
avatar
G
Joined: 25 Feb 2019
Posts: 336
Reviews Badge CAT Tests
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 28 Mar 2019, 02:19
IMO C .

20% decrease = 5 it means original value = 25

and after 5 reduction ,it is 20
now after 20 % increase ,
we get 1.2*20 = 24


IMO C

award kudos if helpful

Posted from my mobile device
Intern
Intern
User avatar
B
Joined: 22 Dec 2018
Posts: 29
Location: India
Schools: HBS '21, ISB '21
Reviews Badge
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 28 Mar 2019, 02:34
1) First find the orginal price.

Let it be X.
So a 20% decrease in X is 5
So X=5/0.2
X=25

2) Now 25-5=20
So increasing it by 20%

Ans = 20*120/100 = 24
Target Test Prep Representative
User avatar
D
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 8117
Location: United States (CA)
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 02 Apr 2019, 19:17
energetics wrote:
The price of an item is reduced by $5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) $30.00
B) $25.00
C) $24.00
D) $20.00
E) $4.00



We can create the equation when n is the original price of the item:

0.2n = 5

n = 5/0.2 = 50/2 = 25

So the new discounted price is 25 x 0.8 = $20. If this new price is increased by 20%, then the final price of the item is:

20 x 1.2 = $24

Answer: C
_________________

Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
TTP - Target Test Prep Logo
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.

Director
Director
User avatar
V
Joined: 12 Feb 2015
Posts: 917
Re: The price of an item is reduced by $5.00, a 20-percent decrease.  [#permalink]

Show Tags

New post 03 Apr 2019, 09:09
energetics wrote:
The price of an item is reduced by $5.00, a 20-percent decrease. If the new price is then increased by 20-percent, what is the final price of the item?

A) $30.00
B) $25.00
C) $24.00
D) $20.00
E) $4.00


The price of an item is reduced by $5.00, a 20-percent decrease = 5 * 0.8/0.2 = 20 (i.e. revised price)

the new price is then increased by 20-percent; i.e 24 (Final price)

Ans C
_________________
________________
Manish :geek:

"Only I can change my life. No one can do it for me"
GMAT Club Bot
Re: The price of an item is reduced by $5.00, a 20-percent decrease.   [#permalink] 03 Apr 2019, 09:09
Display posts from previous: Sort by

The price of an item is reduced by $5.00, a 20-percent decrease.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne