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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## The inflation index for the year 1989 relative to the year tagged by: AAPL ##### This topic has 2 expert replies and 0 member replies ### Top Member ## The inflation index for the year 1989 relative to the year ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Official Guide The inflation index for the year 1989 relative to the year 1970 was 3.56, indicating that, on the average, for each dollar spent in 1970 for goods,$3.56 had to be spent for the same goods in 1989. If the price of a Model K mixer increased precisely according to the inflation index, what was the price of the mixer in 1970?

1) The price of the Model K mixer was $102.40 more in 1989 than in 1970. 2) The price of the Model K mixer was$142.40 in 1989.

OA D.

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AAPL wrote:
Official Guide

The inflation index for the year 1989 relative to the year 1970 was 3.56, indicating that, on the average, for each dollar spent in 1970 for goods, $3.56 had to be spent for the same goods in 1989. If the price of a Model K mixer increased precisely according to the inflation index, what was the price of the mixer in 1970? 1) The price of the Model K mixer was$102.40 more in 1989 than in 1970.
2) The price of the Model K mixer was $142.40 in 1989. $${{{\rm{pric}}{{\rm{e}}_{\,70}}} \over {{\rm{price}}{\,_{89}}}} = {1 \over {3.56}}\,\,\,\,\,\,\left( * \right)$$ $$?\,\, = {\rm{pric}}{{\rm{e}}_{\,70}}$$ $$\left( 1 \right)\,\,\,{\rm{pric}}{{\rm{e}}_{\,89}} - {\rm{pric}}{{\rm{e}}_{\,70}} = 102.40\,\,\,\,\,\mathop \Rightarrow \limits^{\left( * \right)} \,\,\,\,3.56 \cdot {\rm{pric}}{{\rm{e}}_{\,70}} - {\rm{pric}}{{\rm{e}}_{\,70}} = 102.40\,\,\,\,\, \Rightarrow \,\,\,\,{\rm{SUFF}}.\,$$ $$\left( 2 \right)\,\,\,{\rm{pric}}{{\rm{e}}_{\,89}} = 142.40\,\,\,\,\,\mathop \Rightarrow \limits^{\left( * \right)} \,\,\,\,\,3.56 \cdot {\rm{pric}}{{\rm{e}}_{\,70}}\, = 142.40\,\,\,\,\, \Rightarrow \,\,\,\,\,{\rm{SUFF}}.\,$$ This solution follows the notations and rationale taught in the GMATH method. Regards, Fabio. _________________ Fabio Skilnik :: GMATH method creator ( Math for the GMAT) English-speakers :: https://www.gmath.net Portuguese-speakers :: https://www.gmath.com.br ### GMAT/MBA Expert GMAT Instructor Joined 25 Apr 2015 Posted: 2424 messages Followed by: 18 members Upvotes: 43 AAPL wrote: Official Guide The inflation index for the year 1989 relative to the year 1970 was 3.56, indicating that, on the average, for each dollar spent in 1970 for goods,$3.56 had to be spent for the same goods in 1989. If the price of a Model K mixer increased precisely according to the inflation index, what was the price of the mixer in 1970?

1) The price of the Model K mixer was $102.40 more in 1989 than in 1970. 2) The price of the Model K mixer was$142.40 in 1989.
We are given that the inflation for the year 1989 relative to the year 1970 was 3.56, which means the price of an item in 1989 was 3.56 times the price of the same item in 1970. We are also given that the price of a Model K mixer increased according to the given inflation index, and from that we must determine the price of the mixer in 1970.

If we let x = the price of the Model K mixer in 1970, then the price of the Model K mixer in 1989 is 3.56x. Thus, we must determine the value of x.

Statement One Alone:

The price of the Model K mixer was $102.40 more in 1989 than in 1970. Using the information in statement one, we can create the following equation: 3.56x = 102.40 + x We see that we have enough information to determine the value of x. Statement one alone is sufficient to answer the question. Statement Two Alone: The price of the Model K mixer was$142.40 in 1989.

Using the information in statement two we can create the following equation:

3.56x = 142.40

We see that we have enough information to determine the value of x.

_________________

Scott Woodbury-Stewart
Founder and CEO
scott@targettestprep.com

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