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The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the...

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by AAPL » Fri Apr 10, 2020 4:29 am

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Economist GMAT

The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the NGP decreased by an additional 10 percent. By approximately what percent would the NGP now have to be increased in order to restore it to its original amount?

A. 32.5%
B. 35%
C. 48%
D. 65%
E. 67.5%

OA C
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Re: The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the.

by Jay@ManhattanReview » Fri Apr 10, 2020 4:51 am
AAPL wrote: ↑
Fri Apr 10, 2020 4:29 am
 Economist GMAT

The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the NGP decreased by an additional 10 percent. By approximately what percent would the NGP now have to be increased in order to restore it to its original amount?

A. 32.5%
B. 35%
C. 48%
D. 65%
E. 67.5%

OA C
NGP after the decrease by 25% = 100 – 25 = 75%
NGP after the decrease by 10% = 75 – 10% of 75 = 75 – 7.5 = 67.5%

Thus, NGP now must be increased by 100 – 67.5 = 32.5 units

Or, NGP now must be increased by (32.5/67.5)*100% = appx 48%

The correct answer: C

Hope this helps!

-Jay
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Re: The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the.

by Scott@TargetTestPrep » Sun Apr 19, 2020 4:23 am
AAPL wrote: ↑
Fri Apr 10, 2020 4:29 am
 Economist GMAT

The National Gross Product (NGP) of Andalasia had decreased by 25 percent. Due to the ongoing war with Actasia, the NGP decreased by an additional 10 percent. By approximately what percent would the NGP now have to be increased in order to restore it to its original amount?

A. 32.5%
B. 35%
C. 48%
D. 65%
E. 67.5%

OA C
Let 100 be the original amount of NGP and p = the percent the NGP would have to be increased in order to restore to its original amount. We can create the equation:

100 x 0.75 x 0.9 x (100 + p)/100 = 100

67.5 x (100 + p) = 100 x 100

6,750 + 67.5p = 10,000

67.5p = 3,250

p = 3,250/67.5 ≈ 48

Answer: C

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