If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent incre

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BTGModeratorVI: Legendary Member; Posts: 1223; Joined: Sat Feb 15, 2020 2:23 pmFollowed by: 1 member

by BTGModeratorVI » Wed Jan 06, 2021 8:09 am

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If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent increase in cost?

A. 33%
B. 50%
C. 66 2/3%
D. 100%
E. 150%

Answer: B
Source: official guide

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Source: Beat The GMAT — Problem Solving | Wed Jan 06, 2021 8:09 am

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8175; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

Re: If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent i

by Scott@TargetTestPrep » Fri Jan 15, 2021 9:13 am

BTGModeratorVI wrote: ↑
Wed Jan 06, 2021 8:09 am
If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent increase in cost?

A. 33%
B. 50%
C. 66 2/3%
D. 100%
E. 150%

Answer: B
Source: official guide

Solution:

We can approximate the percent increase as if the cost were increased from $200 to $300. Therefore, we see that the amount of increase is $100, which is a 100/200 = 1/2 = 50% increase from $200.

Answer: B

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Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members; Location: Vancouver, BC; Thanked: 5254 times; GMAT Score:770

Re: If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent i

by Brent@GMATPrepNow » Sat Jan 16, 2021 6:52 am

BTGModeratorVI wrote: ↑
Wed Jan 06, 2021 8:09 am
If the cost of a yearly membership in a certain club increased from $199 to $299, what was the approximate percent increase in cost?

A. 33%
B. 50%
C. 66 2/3%
D. 100%
E. 150%

Answer: B
Source: official guide

When I scan the answer choices (ALWAYS scan the answer choices before determining which approach to use), I see that the answer choices are nicely spread apart. This means we can be quite aggressive with our estimation
For more on this, watch the video below

Percent increase = (100)(new value - old value )/(old value)

Percent increase = (100)(299 - 199)/(199) ≈ (100)(300 - 200)/(200)
≈ (100)(100)/(200)
≈ (100)(1)/(2)
≈ 50%

Answer: B

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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