Last visit was: 21 Apr 2026, 00:52 It is currently 21 Apr 2026, 00:52
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
ekwok
Joined: 24 Dec 2023
Last visit: 06 Mar 2024
Posts: 6
Own Kudos:
558
 [64]
Given Kudos: 3
Posts: 6
Kudos: 558
 [64]
3
Kudos
Add Kudos
61
Bookmarks
Bookmark this Post
Most Helpful Reply
User avatar
gmatophobia
User avatar
Quant Chat Moderator
Joined: 22 Dec 2016
Last visit: 19 Apr 2026
Posts: 3,173
Own Kudos:
11,438
 [21]
Given Kudos: 1,862
Location: India
Concentration: Strategy, Leadership
Posts: 3,173
Kudos: 11,438
 [21]
17
Kudos
Add Kudos
3
Bookmarks
Bookmark this Post
User avatar
chetan2u
User avatar
GMAT Expert
Joined: 02 Aug 2009
Last visit: 18 Apr 2026
Posts: 11,230
Own Kudos:
44,980
 [6]
Given Kudos: 335
Status:Math and DI Expert
Location: India
Concentration: Human Resources, General Management
GMAT Focus 1: 735 Q90 V89 DI81
Products:
Expert
Expert reply
GMAT Focus 1: 735 Q90 V89 DI81
Posts: 11,230
Kudos: 44,980
 [6]
5
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
General Discussion
User avatar
Catman
Joined: 03 Aug 2017
Last visit: 12 Feb 2025
Posts: 314
Own Kudos:
333
 [5]
Given Kudos: 219
Products:
Posts: 314
Kudos: 333
 [5]
5
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ekwok
Let A be a positive real number. If B is 90% of A, C is 110% of B, D is 80% of C, and E is 120% of D, which of the following is equal to \(\frac{E}{A}\)?

A) (1 + \(\frac{1}{100}\))(1 + \(\frac{1}{25}\))
B) (1 - \(\frac{1}{100}\))(1 - \(\frac{1}{25}\))
C) (1 + \(\frac{1}{10}\))(1 + \(\frac{1}{5}\))
D) (1 - \(\frac{1}{10}\))(1 - \(\frac{1}{5}\))
E) 1

Let A = 100
B= 90
C= 99
D= 79.2
E = 1.2*79.2 = 95.04

\(\frac{E}{A}\)=0.9504

Eliminate Option A, C and E ( all these are greater than or equal to 1)

D) (1 - \(\frac{1}{10}\))(1 - \(\frac{1}{5}\)) = 0.88 <\(\frac{E}{A}\)
Remaining Option B is the answer.

Choice B
B) (1 - \(\frac{1}{100}\))(1 - \(\frac{1}{25}\))
\((\frac{99}{100})*(\frac{24}{25})\)
\((\frac{99}{100})*(\frac{96}{100})\)
On solving this, we get 0.9504 = \(\frac{E}{A}\)
User avatar
patronumbeagle
Joined: 20 Nov 2022
Last visit: 06 Apr 2026
Posts: 34
Own Kudos:
Given Kudos: 178
Location: Peru
GMAT Focus 1: 645 Q83 V82 DI80
WE:Analyst (Finance: Diversified Financial Services)
GMAT Focus 1: 645 Q83 V82 DI80
Posts: 34
Kudos: 13
Kudos
Add Kudos
Bookmarks
Bookmark this Post
[E][/A]
E= 120% x 80% x 110% x 90% A

in the division [E][/A] A will be cancel and we will have 120% x 80% x 110% x 90%
= (1+20%)(1-20%)(1-10%)(1+10%)

applying exponents theory

= (1- (20%)^2) (1- (10%)^2)
= (1- 20% x 20%) (1- 10% x 10%)
= (1-4%) (1-1%)

reexpressing in fractions:
= (1- [4][/100]) (1-[1][/100])
= (1- [1][/25]) (1-[1][/100])

Answer choice B
User avatar
MartyMurray
Joined: 11 Aug 2023
Last visit: 20 Apr 2026
Posts: 1,830
Own Kudos:
7,079
 [2]
Given Kudos: 209
GMAT 1: 800 Q51 V51
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
GMAT 1: 800 Q51 V51
Posts: 1,830
Kudos: 7,079
 [2]
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Let A be a positive real number. If B is 90% of A, C is 110% of B, D is 80% of C, and E is 120% of D, which of the following is equal to \(\frac{E}{A}\)?

Reducing a number by 10 percent and then increasing the resulting smaller number by 10 percent results in a final number that is smaller than the original.

Similarly, reducing a number by 20 percent and then increasing the resulting smaller number by 20 percent results in a final number that is smaller than the original.

So, the four steps must result in a final number E that is smaller than A. Thus, only choices (B) and (D) are possible.

Choice (D) reduces the number by 10 percent and then 20 percent without the increases of 10 percent and 20 percent included among the four steps to E.

So, (D) is incorrect, and the correct answer must be (B).

(A) \((1 + \frac{1}{100})(1 + \frac{1}{25})\)

(B) \((1 - \frac{1}{100})(1 - \frac{1}{25})\)

(C) \((1 + \frac{1}{10})(1 + \frac{1}{5})\)

(D) \((1 - \frac{1}{10})(1 - \frac{1}{5})\)

(E) \(1\)


Correct answer: B
User avatar
GMATinsight
User avatar
Major Poster
Joined: 08 Jul 2010
Last visit: 19 Apr 2026
Posts: 6,975
Own Kudos:
Given Kudos: 128
Status:GMAT/GRE Tutor l Admission Consultant l On-Demand Course creator
Location: India
GMAT: QUANT+DI EXPERT
Schools: IIM (A) ISB '24
GMAT 1: 750 Q51 V41
WE:Education (Education)
Products:
Expert
Expert reply
Schools: IIM (A) ISB '24
GMAT 1: 750 Q51 V41
Posts: 6,975
Kudos: 16,890
Kudos
Add Kudos
Bookmarks
Bookmark this Post
ekwok
Let A be a positive real number. If B is 90% of A, C is 110% of B, D is 80% of C, and E is 120% of D, which of the following is equal to \(\frac{E}{A}\)?

(A) \((1 + \frac{1}{100})(1 + \frac{1}{25})\)

(B) \((1 - \frac{1}{100})(1 - \frac{1}{25})\)

(C) \((1 + \frac{1}{10})(1 + \frac{1}{5})\)

(D) \((1 - \frac{1}{10})(1 - \frac{1}{5})\)

(E) \(1\)

Let, A = 1000
then B = 90% of A = 900
then C = 110% of B = 1.1*900 = 990
then D = 80% of C = 0.8*990 = (4/5)*990
then E = 120% of D = 1.2*(4/5)*990 = (6/5)*(4/5)*990

\(\frac{E}{A} = {(6/5)*(4/5)*990} / 1000 = (\frac{99}{100})*(\frac{24}{25})\)

Answer: Option B which is \((1 - \frac{1}{100})(1 - \frac{1}{25}) = (\frac{99}{100})*(\frac{24}{25})\)

Related Video:
Moderators:
Math Expert
109715 posts
Tuck School Moderator
853 posts