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

Expert replies

Previous Topic Next Topic

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

Timer

00:00

Your answer

Difficulty–

right wrong

Pick an answer to see how members did

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

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

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8246; 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

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

GMAT/MBA Expert

Brent@GMATPrepNow: GMAT Instructor; Posts: 16206; 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

Featured schoolRound 2 closes Jan 7, 2027 54 days left

Chicago Booth

Since 1982, 10 Booth faculty members have received the Nobel Prize in Economic Sciences, more than any other business school.

#3
U.S. News rank: $175,000
Median base salary: 670
Average GMAT Focus: 635
Students in the class

Apply to Booth Visit chicagobooth.edu See the full profile

Photo: Warren LeMay, CC BY-SA 2.0

GMAT Course Reviews

563 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (563 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review