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A design studio bought a commercial 3D printer. If at the end of each year the printer was worth 60% of what it was worth at the beginning of that year, was the printer worth less than $10,800 at the end of 3 years?
(1) The printer lost more than $12,000 in value during its second year.
(2) The printer’s starting value was more than $49,000.
(1) The printer lost more than $12,000 in value during its second year.
(2) The printer’s starting value was more than $49,000.
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M47-177
07 Jun 2026, 02:45
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GMAT Club Official Solution:
A design studio bought a commercial 3D printer. If at the end of each year the printer was worth 60% of what it was worth at the beginning of that year, was the printer worth less than $10,800 at the end of 3 years?
(1) The printer lost more than $12,000 in value during its second year.
At the start of the second year, the printer was worth 60% of its starting value.
During the second year, it lost 40% of that value.
So the loss during the second year was:
0.4 * 0.6V = 0.24V
0.24V > 12,000
V > 50,000
So the printer’s starting value was greater than $50,000. Therefore, after 3 years, the printer was not worth less than $10,800.
Sufficient.
(2) The printer’s starting value was more than $49,000.
This does not answer whether V < 50,000.
For example, V could be $49,500, in which case the answer is YES.
But V could be $51,000, in which case the answer is NO.
Not sufficient.
Answer: A.
A design studio bought a commercial 3D printer. If at the end of each year the printer was worth 60% of what it was worth at the beginning of that year, was the printer worth less than $10,800 at the end of 3 years?
(1) The printer lost more than $12,000 in value during its second year.
At the start of the second year, the printer was worth 60% of its starting value.
During the second year, it lost 40% of that value.
So the loss during the second year was:
0.4 * 0.6V = 0.24V
0.24V > 12,000
V > 50,000
So the printer’s starting value was greater than $50,000. Therefore, after 3 years, the printer was not worth less than $10,800.
Sufficient.
(2) The printer’s starting value was more than $49,000.
This does not answer whether V < 50,000.
For example, V could be $49,500, in which case the answer is YES.
But V could be $51,000, in which case the answer is NO.
Not sufficient.
Answer: A.
General Discussion
30 May 2026, 14:49
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A design studio bought a commercial 3D printer. If at the end of each year the printer was worth 60% of what it was worth at the beginning of that year, was the printer worth less than $10,800 at the end of 3 years?
(1) The printer lost more than $12,000 in value during its second year.
If at the end of the second year the printer was worth 60% of its value at the beginning of the year, then it lost 40% of its value.
So, 40% was more than $12,000.
We thus know that, at the beginning of the second year, the printer was worth more than $12,000/0.40 = $30,000.
So, at the end of the second year, the printer was worth more than $30,000 - $12,000 = $18,000.
Further, at the end of the third year, the printer was worth more than $18,000 × 0.60 = $10,800.
So, using this statement, we can determine that the answer to the question is No, the computer was not worth less than $10,800.
Sufficient.
(2) The printer’s starting value was more than $49,000.
Clearly, if the starting value was greater than $49,000, the value at the end of 3 years could be greater than $10,800.
So, the key question here is that of whether the value at the end of 3 years could be less than $10,800.
It's easier to use $50,000 as a starting point. So, let's do that and see what we get.
50,000 × 0.6 × 0.6 × 0.6 = 50 × 216 = $10,800.
So, if the starting value was between $49,000 and $50,000, the final value was less than $10,800.
Thus, given this statement, the final value could be greater or less than $10,000.
Insufficient.
Correct answer: A
(1) The printer lost more than $12,000 in value during its second year.
If at the end of the second year the printer was worth 60% of its value at the beginning of the year, then it lost 40% of its value.
So, 40% was more than $12,000.
We thus know that, at the beginning of the second year, the printer was worth more than $12,000/0.40 = $30,000.
So, at the end of the second year, the printer was worth more than $30,000 - $12,000 = $18,000.
Further, at the end of the third year, the printer was worth more than $18,000 × 0.60 = $10,800.
So, using this statement, we can determine that the answer to the question is No, the computer was not worth less than $10,800.
Sufficient.
(2) The printer’s starting value was more than $49,000.
Clearly, if the starting value was greater than $49,000, the value at the end of 3 years could be greater than $10,800.
So, the key question here is that of whether the value at the end of 3 years could be less than $10,800.
It's easier to use $50,000 as a starting point. So, let's do that and see what we get.
50,000 × 0.6 × 0.6 × 0.6 = 50 × 216 = $10,800.
So, if the starting value was between $49,000 and $50,000, the final value was less than $10,800.
Thus, given this statement, the final value could be greater or less than $10,000.
Insufficient.
Correct answer: A
