Source: Princeton Review
At Megalomania Industries, factory workers were paid $20 per hour in 1990 and $10 per hour in 2000. The CEO of Megalomania Industries was paid $5 million per year in 1990 and $50 million per year in 2000. The percent increase in the pay of Megalomania's CEO from 1990 to 2000 was what percent greater than the percent the decrease in the hourly pay of Megalomania's factory workers over the same period?
A. 850%
B. 900%
C. 950%
D. 1,700%
E. 1,900%
The OA is D
At Megalomania Industries, factory workers were paid $20 per
This topic has expert replies
-
- Moderator
- Posts: 2205
- Joined: Sun Oct 15, 2017 1:50 pm
- Followed by:6 members
Timer
00:00
Your Answer
A
B
C
D
E
Global Stats
Percent decrease in worker's pay \(=\frac{20-10}{20}\cdot 100\% = 50\%\)
Percent increase in CEO's pay \(= \frac{50-5}{5} \cdot 100 \%=900\%\)
The question is asking: 900 is what percent greater than 50?
If \(50\) is \(100\%\), then \(900\) is \(1800\%\). So, \(900\) is \(1700\%\) greater than \(50\).
Therefore, __D__
Percent increase in CEO's pay \(= \frac{50-5}{5} \cdot 100 \%=900\%\)
The question is asking: 900 is what percent greater than 50?
If \(50\) is \(100\%\), then \(900\) is \(1800\%\). So, \(900\) is \(1700\%\) greater than \(50\).
Therefore, __D__
GMAT/MBA Expert
- Scott@TargetTestPrep
- GMAT Instructor
- Posts: 7223
- Joined: Sat Apr 25, 2015 10:56 am
- Location: Los Angeles, CA
- Thanked: 43 times
- Followed by:29 members
First, let's calculate the percent decrease for the workers, using the formula (New - Old)/Old x 100:BTGmoderatorLU wrote:Source: Princeton Review
At Megalomania Industries, factory workers were paid $20 per hour in 1990 and $10 per hour in 2000. The CEO of Megalomania Industries was paid $5 million per year in 1990 and $50 million per year in 2000. The percent increase in the pay of Megalomania's CEO from 1990 to 2000 was what percent greater than the percent the decrease in the hourly pay of Megalomania's factory workers over the same period?
A. 850%
B. 900%
C. 950%
D. 1,700%
E. 1,900%
The OA is D
(10 - 20)/20 x 100 = -1/2 x 100 = -50 → 50% decrease
Next we calculate the percent increase for the CEO:
(50,000,000 - 5,000,000)/5,000,000 x 100
45,000,000/5,000,000 x 100
9 x 100 = 900 → 900% increase
Thus:
(900 - 50)/50 x 100
850/50 x 100 = 1700%
Answer: D
Scott Woodbury-Stewart
Founder and CEO
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews