Source: Official Guide for GMAT Review 2016 Problem Solving; #34

2

Lucy invested $10,000 in a new mutual

Lucy invested $10,000 in a new mutual account exactly three years ago. The value of the account increased by 10 percent during the first year, increased by 5 percent during the second year, and decreased by 10 percent during the third year. What is the value of the account today?

2 Explanations

2

Ro Verms

Another way to approach the problem is to use the multipliers slightly differently. You could move the decimal point on all the multipliers to the right to make them whole numbers and for each decimal place you move to the right, you eliminate a zero from $10,000. (1.1 x 1.05 x 0.9) would become (11 x 9 x 105) and $10,000 would become $1, so you have (99 x 105) x 1 = $10,395.

Apr 28, 2016 • Comment

Cydney Seigerman, Magoosh Tutor

Hi Ro! Thanks for sharing your approach! Excellent job :D

Apr 30, 2016 • Reply

1

Gravatar Mike McGarry, Magoosh Tutor

Aug 13, 2015 • Comment

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Official Guide for GMAT Review 2016

Official Guide for the GMAT 2015 14th Ed.

Official Guide for the GMAT 13th Ed.

Official Guide for the GMAT 12th Ed.

Revised GRE PDF 2nd Ed.


Section 5.3 Problem Solving

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