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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## In 1991, the price of a house was 80% of its original price. ##### This topic has 4 expert replies and 1 member reply ### Top Member ## In 1991, the price of a house was 80% of its original price. ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult 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 1/3% D. 40% E. 60% OA B Source: Princeton Review ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2950 messages Followed by: 19 members Upvotes: 43 Top Reply BTGmoderatorDC wrote: 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 1/3% D. 40% E. 60% OA B Source: Princeton Review If the original price is n, then in 1991, the price is 0.8n and in 1992 the price is 0.6n. The percent change is: (0.6n - 0.8n)/0.8n x 100 = -2/8 x 100 = -25% (i.e., a 25% decrease) Answer: B _________________ Scott Woodbury-Stewart Founder and CEO scott@targettestprep.com See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews ### GMAT/MBA Expert GMAT Instructor Joined 08 Dec 2008 Posted: 13046 messages Followed by: 1252 members Upvotes: 5254 GMAT Score: 770 Top Reply BTGmoderatorDC wrote: 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 1/3% D. 40% E. 60% I'd typically assign a "nice" value to the original price, and then follow the steps that Mitch demonstrated. Alternatively, we can solve the question algebraically In 1991, the price of a house was 80% of its original price. Let x = the original price So, 0.8x = the 1991 price In 1992, the price of the house was 60% of its original price. So, 0.6x = the 1992 price By what percent did the price of the house decrease from 1991 to 1992 ? Percent change = 100(change)/old = 100(0.8x - 0.6x)/0.8x = 100(0.2x)/0.8x = 100(0.2)/0.8 = 25% Answer: B Cheers, Brent _________________ Brent Hanneson â€“ Creator of GMATPrepNow.com Use my video course along with Sign up for free Question of the Day emails And check out all of these free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### GMAT/MBA Expert GMAT Instructor Joined 09 Oct 2010 Posted: 1449 messages Followed by: 32 members Upvotes: 59 BTGmoderatorDC wrote: 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 1/3% D. 40% E. 60% Source: Princeton Review $$?\,\,\,:\,\,\,\Delta \% = \frac{{{P_{92}} - {P_{91}}}}{{{P_{91}}}}\,\,\,\,\,\,\,\left( {\Delta \% < 0} \right)$$ $$\left. \matrix{ {P_{91}} = {4 \over 5}P \hfill \cr {P_{92}} = {3 \over 5}P\,\,\, \hfill \cr} \right\}\,\,\,\,\, \Rightarrow \,\,\,\,\,\,\,\Delta \% = {{ - {1 \over 5}P} \over {{4 \over 5}P}} = - {1 \over 4}\,\,\,\,\,\,\, \Rightarrow \,\,\,\,? = 25\% \,\,{\rm{decrease}}$$ This solution follows the notations and rationale taught in the GMATH method. Regards, Fabio. _________________ Fabio Skilnik :: GMATH method creator ( Math for the GMAT) English-speakers :: https://www.gmath.net Portuguese-speakers :: https://www.gmath.com.br ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15387 messages Followed by: 1872 members Upvotes: 13060 GMAT Score: 790 BTGmoderatorDC wrote: 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 1/3% D. 40% E. 60% Let the original price = 100. 1991 price = 80% of 100 = 80. 1992 price = 60% of 100 = 60. Percent decrease from 80 to 60 = (Difference/Larger) * 100 = (20/80) * 100 = 25. The correct answer is B. _________________ Mitch Hunt Private Tutor for the GMAT and GRE GMATGuruNY@gmail.com If you find one of my posts helpful, please take a moment to click on the "UPVOTE" icon. Available for tutoring in NYC and long-distance. For more information, please email me at GMATGuruNY@gmail.com. Student Review #1 Student Review #2 Student Review #3 Free GMAT Practice Test How can you improve your test score if you don't know your baseline score? Take a free online practice exam. Get started on achieving your dream score today! Sign up now. ### Top Member Legendary Member Joined 29 Oct 2017 Posted: 1018 messages Followed by: 4 members Let original price be 100$; so in 1991 price would be 80$and 1992 60$, price decreased by (80-60)/80= 25% option B

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