## In $$1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\%$$

##### This topic has expert replies
Legendary Member
Posts: 823
Joined: 01 Mar 2018
Followed by:2 members

### In $$1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\%$$

by Gmat_mission » Wed Sep 23, 2020 5:36 am

00:00

A

B

C

D

E

## Global Stats

In $$1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\%$$ of its original price. By what percent did the price of the house decrease from $$1991$$ to $$1992?$$

A. $$20\%$$
B. $$25\%$$
C. $$33 \frac13\%$$
D. $$40\%$$
E. $$60\%$$

Source: Princeton Review

Legendary Member
Posts: 1975
Joined: 02 Mar 2018
Followed by:4 members

### Re: In $$1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\% by deloitte247 » Fri Sep 25, 2020 7:53 pm Let original price = x In 1991, price = 80% of x = 0.8x In 1992, price = 60% of x = 0.6x By what percent did the price of the house decreased from 1991 to 1992 \%decrease=\frac{0.8x-0.6x}{0.8x}\cdot\frac{100}{1} \%decrease=\frac{0.2x}{0.8x}\cdot\frac{100}{1}=0.25\cdot100=25\% Answer = option B ### GMAT/MBA Expert GMAT Instructor Posts: 5549 Joined: 25 Apr 2015 Location: Los Angeles, CA Thanked: 43 times Followed by:24 members ### Re: In \(1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\% by Scott@TargetTestPrep » Mon Sep 28, 2020 12:33 pm Gmat_mission wrote: Wed Sep 23, 2020 5:36 am In \(1991,$$ the price of a house was $$80\%$$ of its original price. In $$1992,$$ the price of the house was $$60\%$$ of its original price. By what percent did the price of the house decrease from $$1991$$ to $$1992?$$

A. $$20\%$$
B. $$25\%$$
C. $$33 \frac13\%$$
D. $$40\%$$
E. $$60\%$$

Solution:

We can let the original price of the house be 100 thousand dollars; thus, the price of the house was 80 thousand dollars in 1991 and 60 thousand dollars in 1992. Therefore, the percent change of the price of the house from 1991 to 1992 is:

(60 - 80)/80 x 100 = -1/4 x 100 = -25 percent

Thus, the percent decrease is 25 percent.