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A certain financial institution

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A certain financial institution

by BTGmoderatorDC » Wed Sep 13, 2017 2:25 pm
A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013

B. 0.0013

C. 0.013

D. 0.13

E. 1.3

How will i start solving it? I am confused about the formulas to use. Need experts advice.

OAE
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by Brent@GMATPrepNow » Wed Sep 13, 2017 3:06 pm
lheiannie07 wrote:A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013
B. 0.0013
C. 0.013
D. 0.13
E. 1.3
Since the answer choices are so spread apart, we can use some approximations.
Let's round $2,377,366.30 UP to $2,400,000

Now let's test out some percents.
10% of $2,400,000 is $240,000
1% of $2,400,000 is $24,000

Since $31,724.54 is BETWEEN $24,000 and $240,000 , we can conclude that the desired percent must be BETWEEN 1% and 10%

Only answer choice E is between 1% and 10%

Answer: E

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by Jeff@TargetTestPrep » Tue Sep 19, 2017 3:03 pm
lheiannie07 wrote:A certain financial institution reported that its assets totaled $2,377,366.30 on a certain day. Of this amount, $31,724.54 was held in cash. Approximately what percent of the reported assets was held in cash on that day?

A. 0.00013

B. 0.0013

C. 0.013

D. 0.13

E. 1.3

OAE
The percentage held in cash is:

31,724.54/2,377,366.30 x 100

We can round 31,724.54 to 32,000 and round 2,377,366.30 to 2,400,000, and we have:

32,000/2,400,000 x 100

32/2,400 x 100

32/24

4/3

1.333...

The closest answer choice is 1.3.

Answer: E

Jeffrey Miller
Head of GMAT Instruction
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