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Microchip price decline

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Microchip price decline

by neeti2711 » Mon Feb 25, 2013 2:17 am
The price of a microchip declines by 67 percent every 6 months. At this rate, approximately how many years will it take for the price of an $81 microchip to reach $1?

A. 1.5 years
B. 2 years
C. 3 years
D. 13 years
E. 13.5 years

Please suggest the easiest way to handle such questions.
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by Anurag@Gurome » Mon Feb 25, 2013 2:23 am
neeti2711 wrote:The price of a microchip declines by 67 percent every 6 months. At this rate, approximately how many years will it take for the price of an $81 microchip to reach $1?
67% = 67/100 ≈ 2/3

Hence, every 6 months the price becomes (1 - 2/3) = 1/3 of the previous price.

As 81 = 3^4, it'll take 4 six months for the price to reach $1.

4 six months = 2 years

The correct answer is B.
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