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A certain financial institution reported that its assets totaled $2,377,366.30 on a certain...

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A certain financial institution reported that its assets totaled $2,377,366.30 on a certain...

by BTGmoderatorLU » Mon May 04, 2020 7:01 am
Source: Official Guide

A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3

The OA is E
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Re: A certain financial institution reported that its assets totaled $2,377,366.30 on a certain...

by Brent@GMATPrepNow » Mon May 04, 2020 2:33 pm
BTGmoderatorLU wrote: ↑
Mon May 04, 2020 7:01 am
 Source: Official Guide

A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3

The OA is E
Since the answer choices are so spread apart, we can use some approximations.
Let's round $2,377,366.30 UP to $2,400,000

Now let's test out some percents.
10% of $2,400,000 is $240,000
1% of $2,400,000 is $24,000

Since $31,724.54 is BETWEEN $24,000 and $240,000 , we can conclude that the desired percent must be BETWEEN 1% and 10%

Only answer choice E is between 1% and 10%

Answer: E
Brent Hanneson - Creator of GMATPrepNow.com
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