Source: Official Guide for GMAT Review 2016 Problem Solving; #1


The price of a coat in a certain

The price of a coat in a certain store is $ 500. If the price of the coat is to be reduced by $ 150, by what percent is the price to be reduced?

4 Explanations


Louis Puma

Since we are solving for a percentage we can set up the simple equation: 150/500 = x/100. Cross multiply to get 500x = 15,000. Divide both sides by 500 and you get x=30. Answer choice E.

Aug 4, 2016 • Comment

Sam Kinsman

Yes, that works perfectly - good job! :D

Aug 8, 2016 • Reply


Jonathan R Holland

Lets say we divide the cost of the coat by 50% , that's $250.

We can divide the cost of $250 again by 50% (which is actually 25% of the total cost), its now $125.

We can see from the answer selections that $125 is a 25% reduction in price, so that would mean 30% is equal to a $150 reduction.

Jun 24, 2016 • Comment


Poojitha Joseph Mallavarapu

Right Option :E

Explanation: Price of a coat is $500
Cost reduced by $150
Find the percentage of price reduced.

Let "X" be the percentage decrease.
x=150/5 =30
Hence: 30% decrease of $500 would be $150.

Sep 30, 2015 • Comment


Naimah Bilal

The question is asking for the percent of the price reduction. We're solving for p (percent) and one option is to set this up as an equation as follows:

The coat was originally $500. It is being reduced by $150. *Note, $150 references the amount of the discount, and not the discounted price which is $350.

So -> 150=500p
(500 times some percentage, gives us a reduction of 150)

Divide both sides by 500 and we get -> 150/500=p

Reduce the rational expression and multiply by 100 to get a percent -> (3/10 * 100) so p= 30%

The fastest route, however, is just to utilize a part to whole ratio and multiply by 100 to get a percent:

(150/500)*100=(3/10 * 100)%=30%

Sep 16, 2015 • Comment

Sam Kinsman

That's right, good explanation Naimah!

Nov 3, 2015 • Reply

Poojitha Joseph Mallavarapu

Great! Thanks Naimah :)

Nov 4, 2015 • Reply

Add Your Explanation

You must have a Magoosh account in order to leave an explanation.

Learn More About Magoosh

Official GMAT Material

Official Guide for GMAT Review 2016

Official Guide for the GMAT 2015 14th Ed.

Official Guide for the GMAT 13th Ed.

Nova's GRE Prep

Official Guide for the GMAT 12th Ed.

Revised GRE PDF 2nd Ed.

Section 5.3 Problem Solving

Improve Your Score

Magoosh GMAT is an affordable online course for studying the GMAT.

Learn More About Magoosh

Share Post