In 1991, the price of a house was 80% of its original price. In 1992, the price of the house was 60% of its original price. By what percent did the price of the house decrease from 1991 to 1992 ?
A. 20%
B. 25%
C. 33 1/3%
D. 40%
E. 60%
OA B
Source: Princeton Review
In 1991, the price of a house was 80% of its original price.
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Hi All,
We're told that in 1991, the price of a house was 80% of its original price and in 1992, the price of the house was 60% of its original price. We're asked by what percent the price of the house decreased from 1991 to 1992. This question can be solved in a couple of different ways, including by TESTing VALUES.
IF... the starting price = $100
Price in 1991 = (.8)($100) = $80
Price in 1992 = (.6)($100) = $60
Percent change in price from 1991 to 1992 = (60 - 80)/80 = -20/80 = -1/4 = -25% = a 25% decrease
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
We're told that in 1991, the price of a house was 80% of its original price and in 1992, the price of the house was 60% of its original price. We're asked by what percent the price of the house decreased from 1991 to 1992. This question can be solved in a couple of different ways, including by TESTing VALUES.
IF... the starting price = $100
Price in 1991 = (.8)($100) = $80
Price in 1992 = (.6)($100) = $60
Percent change in price from 1991 to 1992 = (60 - 80)/80 = -20/80 = -1/4 = -25% = a 25% decrease
Final Answer: B
GMAT assassins aren't born, they're made,
Rich
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If the original price is n, then in 1991 the price is 0.8n and in 1992 the price is 0.6n. The percent change is:BTGmoderatorDC wrote:In 1991, the price of a house was 80% of its original price. In 1992, the price of the house was 60% of its original price. By what percent did the price of the house decrease from 1991 to 1992 ?
A. 20%
B. 25%
C. 33 1/3%
D. 40%
E. 60%
OA B
Source: Princeton Review
(0.6n - 0.8n)/0.8n x 100 = -2/8 x 100 = -25% (i.e., a 25% decrease)
Answer: B
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