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Percents

by BTGmoderatorRO » Sun Dec 24, 2017 7:59 am
A certain company's profit in 1996 was 15 percent greater than its profit in 1995, and its profit in 1997 was 20 percent greater than its profit in 1996. The company's profit in 1997 was what percent greater than its profit in 1995?

A. 5%
B. 18%
C. 33%
D. 35%
E. 38%

OA is E
I solved over and over again and didn't get E. Can an Expert confirm the validity of the option? Thanks
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by Brent@GMATPrepNow » Sun Dec 24, 2017 8:07 am
Roland2rule wrote:A certain company's profit in 1996 was 15 percent greater than its profit in 1995, and its profit in 1997 was 20 percent greater than its profit in 1996. The company's profit in 1997 was what percent greater than its profit in 1995?

A. 5%
B. 18%
C. 33%
D. 35%
E. 38%
Let $100 = the profits in 1995

The company's profit in 1996 was 15 percent greater than its profit in 1995
If the 1995 profits were $100, then the 1996 profits are $115

The company's profit in 1997 was 20 percent greater than its profit in 1996
If the 1996 profits were $115, then the 1997 profits = $115 + (20% of $115) = $115 + $23 = $138

The company's profit in 1997 was what percent greater than its profit in 1995?
1995 profits = $100
1997 profits = $138

$138 is 38% greater than $100
Answer: E

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Brent
Brent Hanneson - Creator of GMATPrepNow.com
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