The annual rent collected by a corporation from a certain building was x percent more in 1998 than in 1997 and y percent less in 1999 than in 1998. Was the annual rent collected by the corporation from the building more in 1999 than in 1997?
(1) x > y
(2) xy/100 < x-y
Thanks
Annual Rent
This topic has expert replies
-
- Master | Next Rank: 500 Posts
- Posts: 435
- Joined: Wed Nov 16, 2011 7:27 am
- Thanked: 48 times
- Followed by:16 members
GMAT/MBA Expert
- Anurag@Gurome
- GMAT Instructor
- Posts: 3835
- Joined: Fri Apr 02, 2010 10:00 pm
- Location: Milpitas, CA
- Thanked: 1854 times
- Followed by:523 members
- GMAT Score:770
Let the rent collected in 1997 = Ralex.gellatly wrote:The annual rent collected by a corporation from a certain building was x percent more in 1998 than in 1997 and y percent less in 1999 than in 1998. Was the annual rent collected by the corporation from the building more in 1999 than in 1997?
(1) x > y
(2) xy/100 < x-y
Thanks
Then rent collected in 1998 = R + Rx/100 = R(1 + x/100)
Rent collected in 1999 = R(1 + x/100) - y% of R(1 + x/100) = R(1 + x/100)(1 - y/100)
Question is: Is R(1 + x/100)(1 - y/100) > R? OR Is 1 + x/100 - y/100 - xy/10000 > 1? OR Is x - y > xy/100?
(1) x > y, which does not imply whether x - y > xy/100 or not; NOT sufficient.
(2) xy/100 < x - y is exactly what the question is asking for; SUFFICIENT.
The correct answer is B.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)
Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
- GMATGuruNY
- GMAT Instructor
- Posts: 15539
- Joined: Tue May 25, 2010 12:04 pm
- Location: New York, NY
- Thanked: 13060 times
- Followed by:1906 members
- GMAT Score:790
Let rent in 1997 = 100.alex.gellatly wrote:The annual rent collected by a corporation from a certain building was x percent more in 1998 than in 1997 and y percent less in 1999 than in 1998. Was the annual rent collected by the corporation from the building more in 1999 than in 1997?
(1) x > y
(2) xy/100 < x-y
Thanks
Increase in 1998 = (x/100)*100 = x.
Thus, rent in 1998 = 100+x.
Decrease in 1999 = y/100*(100+x) = y + xy/100
The problem asks whether the increase is greater than the decrease. Thus, the question can be rephrased as:
Is x > y + xy/100?
Statement 1: x > y
If x=20 and y=10, then y + xy/100 = 10 + (20*10)/100 = 12.
Is 20 > 12? Yes.
If x=90 and y=80, then y + xy/100 = 80 + (90*80)/100 = 152.
Is 90 > 152? No.
Since the answer can be both yes and no, insufficient.
Statement 2: x-y > xy/100
If x-y > xy/100, then x > y + xy/100.
Sufficient.
The correct answer is B.
It is helpful to be able to recognize the following formulas for repeated percent change:
If a value increases by x% and then by another y%, the total percent change = x + y + xy/100.
If a value increases by x% and then decreases by y%, the total percent change = x - y - xy/100.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3