Problem Solving

Hi All,

We're told that at Megalomania Industries, factory workers were paid $20 per hour in 1990 and $10 per hour in 2000 and the CEO of Megalomania Industries was paid $5 million per year in 1990 and $50 million per year in 2000. We're asked for what percent greater was the percent increase in the pay of Megalomania's CEO from 1990 to 2000 was what percent greater than the percent the decrease in the hourly pay of Megalomania's factory workers over the same period.

This question is based on the Percent Change Formula: (New - Old)/(Old) = (Difference)/(Original)

The CEO's salary percent increase = (50 million - 5 million)/(5 million) = 45/5 = 9 = 900% = 900% increase in salary

The worker's hourly percent decrease = (10 - 20)/(20) = -10/20 = -1/2 = -50% = 50% decrease in hourly pay

900 is what percent greater than 50?.... (900 - 50)/(50) = 850/50 = 17 = 1700% greater

Final Answer: D

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AAPL wrote:Princeton Review

At Megalomania Industries, factory workers were paid $20 per hour in 1990 and $10 per hour in 2000. The CEO of Megalomania Industries was paid $5 million per year in 1990 and $50 million per year in 2000. The percent increase in the pay of Megalomania's CEO from 1990 to 2000 was what percent greater than the percent the decrease in the hourly pay of Megalomania's factory workers over the same period?

A. 850%
B. 900%
C. 950%
D. 1,700%
E. 1,900%

OA D

First, let's calculate the percent decrease for the workers, using the formula (New - Old)/Old x 100:

(10 - 20)/20 x 100 = 50% decrease

Next we calculate the percent increase for the CEO:

(50,000,000 - 5,000,000)/5,000,000 x 100

45,000,000/5,000,000 x 100

9 x 100 = 900% increase

Thus:

(900 - 50)/50 x 100

850/50 x 100 = 1700%

Answer: D