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by rabab » Thu Oct 09, 2008 9:08 am
The output of a factory was raised by 10% to keep up with rising demand. To handle the holiday rush, this new output was increased by 20%. By approximately what percent would the output now have to be decreased in order to restore the original output?

a. 20%
b. 24%
c. 30%
d. 32%
e. 79%

IOM 32%.
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by toudavis » Thu Oct 09, 2008 9:13 am
Agreed.

Start with 100(1.10) = 110
110(1.20) = 132

(Orig - New)/New = (100-132)/100 = 32/100 or 32%
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by rabab » Thu Oct 09, 2008 9:19 am
But PR says the answer should be 24%. I don't get it.
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by mental » Thu Oct 09, 2008 9:26 am
IMO B

rabab and toudavis

going with ur values
Start with 100(1.10) = 110
110(1.20) = 132

current level is 132, old level 100

to bring 132 to 100 we have to reduce by 32

so 32 is how much percent of 132:
32/132 is approx 24%
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by rabab » Thu Oct 09, 2008 9:32 am
mental wrote:IMO B

rabab and toudavis

going with ur values
Start with 100(1.10) = 110
110(1.20) = 132

current level is 132, old level 100

to bring 132 to 100 we have to reduce by 32

so 32 is how much percent of 132:
32/132 is approx 24%
I see. Thanks for the help! :)
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by VP_Jim » Thu Oct 09, 2008 4:31 pm
Nothing to add here really - the explanation above (from mental) is fine. Start with 100 and then figure it out from there.

I did want to say, though, that this is a classic GMAT trap: tricking people into saying that the percent decrease from x to y would be the same as the percent increase from y to x (in this case, the percent decrease from 132 to 100 is not the same as the percent incresae from 100 to 132).

Be careful!
Jim S. | GMAT Instructor | Veritas Prep
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by vishubn » Thu Oct 09, 2008 9:13 pm
Thanks mental for the explanation and Rahab for posting the question !
tricky one
:)

Vishu
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by raunekk » Thu Oct 09, 2008 10:48 pm
imo:B
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