Percents And Interest Problems

[S swerve]

The price of a certain house went down 40 percent. By what percent does the new price have to be increased in order to bring it back up to the original price?


A. \(20\%\)

B. \(33 \frac{1}{3} \%\)

C. \(40\%\)

D. \(60\%\)

E. \(66 \frac{2}{3} \%\)

The OA is E

Source: Manhattan Prep

[Scott@TargetTestPrep]

The price of a certain house went down 40 percent. By what percent does the new price have to be increased in order to bring it back up to the original price?


A. \(20\%\)

B. \(33 \frac{1}{3} \%\)

C. \(40\%\)

D. \(60\%\)

E. \(66 \frac{2}{3} \%\)

The OA is E

Solution:

We can let the original price of the house be $100, and the new price is $60 after the price decrease of 40%. To bring $60 back to $100, we can create the following equation, where x is the percent change:

60(1 + x/100) = 100

1 + x/100 = 100/60

x/100 = 5/3 - 1

x/100 = 2/3

x = 2/3 * 100 = 66 ⅔

Answer: E