IMO A
Stmt1: The market value of the car depreciates 20% every year. So, 2 year back, the market value was = 6000*(1-1/5) ==> 6000*4/5 ==> $4800. One year back the market value was = 4800*4/5 ==> $3840. This year the market value is = 3840*4/5 ==> $3072. Sufficient.
Stmt2: Firstly, I don't like the way this statement is constructed. How am I to assume the same year the car was manufactured? When dealing with DS question, each statement should be dealt with separately. This statement is tempting me to bring information from Statement 1 (which is not correct). Clearly, this statement is not sufficient because I do not know which year the statement is talking about & I also do not know what the depreciation value of the car is or the original price of the car. With no such details, this statement is not sufficient.
ds
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Source: Beat The GMAT — Data Sufficiency |
just a small query.....in statement 1 we dont have any information about how many years back the car was bought.....
isn't statement 2 stating wht the question is asking us to find?
pls help me understand...
isn't statement 2 stating wht the question is asking us to find?
pls help me understand...
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DeepakR
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#1 the info of when the car was bought is not required since it is already given that the market value of that car 3 years back was $6000.
Also given that the market value deprecated by 20% each year..i.e its value got decreased by 20% each year.
So 3 years back value = $6000
2 years back value = 6000 - 6000 (20/100)=6000(4/5)
1 year back value = 6000*4/5*4/5
Current year value = 6000*4/5*4/5*4/5
#1 is sufficient
#2 Does not give the info about the current market value of the car whose market value was $6000 3 years back. Instead it gives the market value of another car which was manufactured this year.
-Deepak
Also given that the market value deprecated by 20% each year..i.e its value got decreased by 20% each year.
So 3 years back value = $6000
2 years back value = 6000 - 6000 (20/100)=6000(4/5)
1 year back value = 6000*4/5*4/5
Current year value = 6000*4/5*4/5*4/5
#1 is sufficient
#2 Does not give the info about the current market value of the car whose market value was $6000 3 years back. Instead it gives the market value of another car which was manufactured this year.
-Deepak
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mike22629
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This is a poorly constructed question, but I would say E.
In 1.) It tells you that the car depreciates by 20% OF ITS PURCHASE PRICE per year, not that it depreciates by 20% of its current value. We dont not know how old the car was three years ago, so how we can find out its original purchase price?
2.) The second question is poorly worded. How do we know that it is the same car?
I would say E, but if I had to guess, the second statement was copied incorrectly.
In 1.) It tells you that the car depreciates by 20% OF ITS PURCHASE PRICE per year, not that it depreciates by 20% of its current value. We dont not know how old the car was three years ago, so how we can find out its original purchase price?
2.) The second question is poorly worded. How do we know that it is the same car?
I would say E, but if I had to guess, the second statement was copied incorrectly.
