Problem Solving:-)

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Problem Solving:-)

by Shamhoon » Mon Apr 18, 2011 10:38 am
The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ?

200x
------
100 + 2x


x(2 + x)
--------
(1 + x)2


2x
---------
1 + 2x


x(200 + x)
-------------
10,000


10,000
100 - -------------
100 + x
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by amisahoo » Mon Apr 18, 2011 10:53 am
Suppose the investment amount is 100

At end of Jan : 100 + x
at the end of Feb : (100+x) - y(100+x)/100 = 100

Solving the above equation of Feb : y = 100x / (100+x) which is option E

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by GMATGuruNY » Mon Apr 18, 2011 10:58 am
Shamhoon wrote:The value of an investment increases by x% during January and decreases by y% during February. If the value of the investment is the same at the end of February as at the beginning of January, what is y in terms of x ?

200x
------
100 + 2x


x(2 + x)
--------
(1 + x)2


2x
---------
1 + 2x


x(200 + x)
-------------
10,000


10,000
100 - -------------
100 + x
Let investment = 100.
Let x=25.
Increase in January = 100 + 25% of 100 = 100+25 = 125.
To decrease back down to 100 in February, y=20:
125 - 20% of 125 = 125-25 = 100.

Since the question asks for the value of y, our target is y=20.

Now we plug x=25 into all the answers to see which yields our target of 20.

Only answer choice E works:
100 - 10,000/(100+x) = 100 - 10,000/(100+25) = 100-80 = 20.

The correct answer is E.
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