In 1991, the price of a house was 80% of its original price.

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BTGmoderatorDC: Moderator; Posts: 7187; Joined: Thu Sep 07, 2017 4:43 pm; Followed by:23 members

In 1991, the price of a house was 80% of its original price.

by BTGmoderatorDC » Sat Dec 15, 2018 5:04 pm

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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

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by [email protected] » Sat Dec 15, 2018 5:14 pm

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

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Rich

Contact Rich at [email protected]

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by Scott@TargetTestPrep » Thu Mar 14, 2019 3:58 pm

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

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:

(0.6n - 0.8n)/0.8n x 100 = -2/8 x 100 = -25% (i.e., a 25% decrease)

Answer: B

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