From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4. From 2003 to 2006, the num

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From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4. From 2003 to 2006, the number of employees at this company decreased by a factor of 1/3. If there were 100 employees at the company in 2006, how many employees were there at the company in 2000?

A. 200
B. 120
C. 100
D. 75
E. 60

Answer: B

Source: Official Guide

[Brent@GMATPrepNow]

From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4. From 2003 to 2006, the number of employees at this company decreased by a factor of 1/3. If there were 100 employees at the company in 2006, how many employees were there at the company in 2000?

A. 200
B. 120
C. 100
D. 75
E. 60

Answer: B

Source: Official Guide

From 2000 to 2003, the number of employees at a certain company increased by a factor of 1/4
Let x = the number of employees in 2000
So, the number of employees in 2003 = x + (1/4)x
= (5/4)x

From 2003 to 2006, the number of employees at this company decreased by a factor of 1/3
(5/4)x = the number of employees in 2003
So, the number of employees in 2006 = (5/4)x - (1/3)((5/4)x
= (5/4)x - (5/12)x
= (15/12)x - (5/12)x
= (10/12)x
= (5/6)x

If there were 100 employees at the company in 2006, how many employees were there at the company in 2000 ?
We can write: (5/6)x = 100
Multiply both sides by 6 to get; 5x = 600
Solve: x = 600/5 = 120

Answer: B

Cheers,
Brent