600+ DS percent problem

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600+ DS percent problem

by tonebeeze » Mon Jan 03, 2011 6:23 pm
I got this problem correct using DS guessing theory. I still do not fully understand the algebra. Can someone flesh out statement 2 for me. Thanks!

Price increased by M% from 1991 to 1992 and by N% from 1992 to 1993. What was the percentage increase in price from 1991 to 1993?

1. MN = 300

2. 100M + 100N + MN = 4300

OA is (B).
Source: — Data Sufficiency |

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by GMATGuruNY » Mon Jan 03, 2011 7:00 pm
tonebeeze wrote:I got this problem correct using DS guessing theory. I still do not fully understand the algebra. Can someone flesh out statement 2 for me. Thanks!

Price increased by M% from 1991 to 1992 and by N% from 1992 to 1993. What was the percentage increase in price from 1991 to 1993?

1. MN = 300

2. 100M + 100N + MN = 4300

OA is (B).
Plug in price = 100.
Increase from 1991 to 1992 = M/100 * 100 = M.
New price = 100+M.
Increase from 1992 to 1993 = N/100*(100+M) = N + MN/100
Total increase = increase from 1991 to 1992 + increase from 1992 to 1993 = M + N + MN/100

Since the initial price was 100, the total increase and the percent increase are the same. Thus, the question becomes:

What is the value of M + N + MN/100?

Statement 1: MN = 300.
Not sufficient to determine the value of M + N + MN/100.

Statement 2:
100M + 100N + MN = 4300
M + N + MN/100 = 43.
Sufficient.

The correct answer is B.
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by anshumishra » Mon Jan 03, 2011 7:26 pm
tonebeeze wrote:I got this problem correct using DS guessing theory. I still do not fully understand the algebra. Can someone flesh out statement 2 for me. Thanks!

Price increased by M% from 1991 to 1992 and by N% from 1992 to 1993. What was the percentage increase in price from 1991 to 1993?

1. MN = 300

2. 100M + 100N + MN = 4300

OA is (B).
Alright, Lets do statement 2 only ->

Price in 1991 -> 100
price in 1992 -> 100(1+M/100)
Price in 1993 -> 100(1+M/100)(1+N/100)

So, the increase = 100(1+M/100)(1+N/100) - 100
= (100M + 100 N + MN) / 100

So, it is sufficient.
Thanks
Anshu

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