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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A baseball card decrease in value 20% in its first year... tagged by: BTGmoderatorLU ##### This topic has 3 expert replies and 1 member reply ### Top Member ## A baseball card decrease in value 20% in its first year... A baseball card decrease in value 20% in its first year and 10% in its second year. What was the total percent decrease of the card's value over the two years? A. 28% B. 30% C. 32% D. 36% E. 72% The OA is A. I'm confused by this PS question, is there a formula to solve it? Experts, any suggestion? Thanks in advance. ### GMAT/MBA Expert Legendary Member Joined 20 Jul 2017 Posted: 503 messages Followed by: 11 members Upvotes: 86 GMAT Score: 770 Let's say the original value of the baseball card is x. If it decreases in value by 20% in the first year, that means its value at the end of the first year is 80% of the original value, or 0.8x. Then the value decreases by 10% in the second year. This means that its value at the end of the second year is 90% of its value at the end of the first year, or 0.9(0.8x). Simplifying gives us 0.72x - so at the end of the second year, the value of the card is 72% of its original value. This means the card has lost 28% of its value, or answer choice A. When you see percents, your best best is often to turn the percents into decimals and start making equations. However, we can also solve logically - we lose 20% of the original value, then we lose 10% of the reduced value. 10% of the reduced value is less than 10% of the original value, so the value must decrease by less that 30% in total. This leaves us with A as the only possible answer. _________________ Erika John - Content Manager/Lead Instructor https://gmat.prepscholar.com/gmat/s/ Get tutoring from me or another PrepScholar GMAT expert: https://gmat.prepscholar.com/gmat/s/tutoring/ Learn about our exclusive savings for BTG members (up to 25% off) and our 5 day free trial Check out our PrepScholar GMAT YouTube channel, and read our expert guides on the PrepScholar GMAT blog ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15023 messages Followed by: 1859 members Upvotes: 13060 GMAT Score: 790 LUANDATO wrote: A baseball card decrease in value 20% in its first year and 10% in its second year. What was the total percent decrease of the card's value over the two years? A. 28% B. 30% C. 32% D. 36% E. 72% Let the original value of the card = 100. After a 20% decrease, the card = 100 - (20% of 100) = 100 - 20 = 80. After an additional 10% decrease, the card = 80 - (10% of 80) = 80 - 8 = 72. Total decrease = 100 - 72 = 28. Since the card loses$28 of its original $100 value, the total percent decrease = 28/100 = 28%. The correct answer is A. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### GMAT/MBA Expert GMAT Instructor Joined 09 Apr 2015 Posted: 1461 messages Followed by: 17 members Upvotes: 39 LUANDATO wrote: A baseball card decrease in value 20% in its first year and 10% in its second year. What was the total percent decrease of the card's value over the two years? A. 28% B. 30% C. 32% D. 36% E. 72% In two years the card is worth 0.8 x 0.9 = 0.72 = 72% of its original value, which is a 28% decrease from its original value. Answer: A _________________ Jeffrey Miller Head of GMAT Instruction Moderator Joined 30 Aug 2017 Posted: 772 messages Followed by: 6 members The decrease of 20% in the first year = 80%=0.8 The decrease of 10% in the second year = 90%= 0.9 So, in 2 years the card is worth 0.8*0.9=0.72= 72% of its original value. This implies it is 28% decrease from its original value. Hence, the correct answer is A • Award-winning private GMAT tutoring Register now and save up to$200

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