A certain company’s profit in 1996 was 15 percent greater

Question

A certain company’s profit in 1996 was 15 percent greater than its profit in 1995, and its profit in 1997 was 20 percent greater than its profit in 1996. The company’s profit in 1997 was what percent greater than its profit in 1995?

A. 5%
B. 18%
C. 33%
D. 35%
E. 38%

A. 5%
B. 18%
C. 33%
D. 35%
E. 38%

howzthat · Answer

Answer is E
Profit in 1995 - 100
Profit in 1996 - 115
%increae Profit in 1997 in comparison to 1995 = 15 + 115*20%= 38

Posted from my mobile device

BDSunDevil · Answer

1995=100
1996=115
1997=138
increase = 138/100=38%=E
Doubt its 700-level question though.

Bowtie · Answer

E. I agree with BDSundevil, this does not seem to be a 700 level question, might not even be a - 700. Eitherway it is still a good question to for practice

BrentGMATPrepNow · Answer

Let  $100  = the profits in 1995

The company’s profit in 1996 was 15 percent greater than its profit in 1995  
If the 1995 profits were  $100 , then the 1996 profits are $115

The company’s profit in 1997 was 20 percent greater than its profit in 1996  
If the 1996 profits were $115, then the 1997 profits = $115 + (20% of $115) = $115 + $23 =  $138

The company’s profit in 1997 was what percent greater than its profit in 1995?  
1995 profits =  $100  
1997 profits =   $138

$138  is 38% greater than  $100  
Answer: E

Cheers,
Brent

generis · Answer

You can use successive percent increase formula here where
 A = 15 
 B = 20

( A + B + \frac{AB}{100} )% 
(The percent sign and parentheses are the strict version. On this forum it is rarely written with the percent sign or parentheses.)

15 + 20 + \frac{300}{100}

(15 + 20 + 3) = 38

38 %

Answer E

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

A certain company’s profit in 1996 was 15 percent greater

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

A certain company’s profit in 1996 was 15 percent greater

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards