GMAT Quantitative Reasoning Practice Test 2

Question : 82 of 100

Marks: +1, -0

A certain car’s price decreased by 2.5% (from the original price) each year from 1996 to 2002, during that time the owner of the car invested in a new carburetor and a new audio system for the car, which increased her price by

\$1,500

. If the price of the car in 1996 was

\$ 22,000

, what is the car's price in 2002 ?

$\$ 18,400$
$\$ 19,500$
$\$ 20,200$
$\$ 20,400$
$\$ 21,100$

Validate

Solution:

The price of the car decreased by

2.5 \%

every year on a course of 6 years. That means that the price of the car in 2002 is

15 \%

lower than the original

+\$ 1500

of new investments. The new price is

\$ 22,000 × 0.85=18,700+1500=\$ 20,200

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