Live GMAT classes with Target Test Prep start Nov 21 and Nov 22. First class free.

See classes
Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

Newsweek Readers’ Choice Awards 2026 winner: Target Test Prep, #1 Test Prep

Target Test Prep was voted #1 Best Test Prep in the 2026 Newsweek Readers’ Choice™ Awards.

★★★★★5.0563 reviews
GMATLiveTeachStarts Nov 22
Josh Braslow, Target Test Prep GMAT expert
LIVE ONLINE CLASSES

Get Ready for GMAT Test Day Faster with Live Online Classes

with Josh Braslow, 20+ years in test prep

Nov 22 · Josh Braslow
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes + 6 months of TTP OnDemand
  • Attend the first class for free
  • Every class is recorded, so you never fall behind
View classes & enroll
Limited seats availableTarget Test Prep
EALiveTeachOnDemandStart anytime
EXECUTIVE ASSESSMENT

Target Test Prep EA OnDemand

Self-paced EA prep. Study on your schedule.

EXECUTIVE ASSESSMENT

with

165+ EA score guarantee
$05-day trial no automatic billing
Schedule
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll Start free 5-day trial
Limited cohort · enrollment openTrial includes full course accessTarget Test Prep
GMATOnDemandStart anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 563 reviewsTarget Test Prep

A real estate investment firm began the year with 80% of its

Expert replies
Post new topic Post Reply
Subscribe topic
Previous Topic Next Topic
Moderator
Posts: 7187
Joined: Thu Sep 07, 2017 4:43 pmFollowed by: 23 members
by BTGmoderatorDC » Thu Aug 08, 2019 2:46 am
Timer
00:00
Your answer
Difficulty–

right wrong

Pick an answer to see how members did

A real estate investment firm began the year with 80% of its investments in commercial real estate and 20% in residential real estate. Over the course of the year, the total value of its investments increased by 3.5%, with the value of its commercial real estate holdings growing by 7%. This means that the value of its residential real estate holdings:

A. Did not change
B. Decreased by 14%
C. Decreased by 10.5%
D. Decreased by 3.5%
E. Increased by 1.5%

OA C

Source: Veritas Prep
Top
Join the discussion
Source: — Problem Solving |
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Thu Aug 08, 2019 3:54 am
BTGmoderatorDC wrote:A real estate investment firm began the year with 80% of its investments in commercial real estate and 20% in residential real estate. Over the course of the year, the total value of its investments increased by 3.5%, with the value of its commercial real estate holdings growing by 7%. This means that the value of its residential real estate holdings:

A. Did not change
B. Decreased by 14%
C. Decreased by 10.5%
D. Decreased by 3.5%
E. Increased by 1.5%
Let the total investment = $1000, implying that commercial holdings = 80% of 1000 = $800 and that residential holdings = 1000-800 = $200.

Since the total $1000 investment grows by 3.5%, the total growth = 3.5% of 1000 = $35.
Since the $800 in commercial holdings grows by 7%, the growth in commercial holdings = 7% of 800 = $56.

Change for residential holdings = (total growth) - (commercial growth) = 35-56 = -$21.
Since the $200 in residential holdings suffers a $21 loss, we get:
Percent decrease = decrease/original * 100 = 21/200 * 100 = 10.5%.

The correct answer is C.
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
Top
Join the discussion

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8246
Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members
Location: Los Angeles, CA
Thanked: 43 times

by Scott@TargetTestPrep » Sun Aug 11, 2019 6:28 pm
BTGmoderatorDC wrote:A real estate investment firm began the year with 80% of its investments in commercial real estate and 20% in residential real estate. Over the course of the year, the total value of its investments increased by 3.5%, with the value of its commercial real estate holdings growing by 7%. This means that the value of its residential real estate holdings:

A. Did not change
B. Decreased by 14%
C. Decreased by 10.5%
D. Decreased by 3.5%
E. Increased by 1.5%

OA C

Source: Veritas Prep
We are given that a real estate investment firm began the year with 80% of its investments in commercial real estate and 20% in residential real estate. If we let the total investments = 1000, then 0.8 x 1000 = 800 = commercial real estate and 0.2 x 1000 = 200 = residential real estate.

We are also given that the total investments increased by 3.5% and that commercial real estate investments increased by 7%. We need to determine the change in percentage for residential real estate investments.

We can let n be the change in percentage of the residential real estate investments and create the following equation:

1.07(800) + (1 + n/100)(200) = 1.035(1000)

856 + 200 + 2n = 1035

1056 + 2n = 1035

2n = -21

n = -10.5

Since n is negative, the value of investments in residential real estate decreased by 10.5 percent.

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Join the discussion