GMAT Quantitative Reasoning Practice Test 2

Question : 84 of 100

Marks: +1, -0

The apartment on King-Williams street is an asset that its value is tramping about.
From the year 1973 to 1983 it’s value decreased by 16% and from 1983 to 1993 it’s value increased by 16%. What is the value of the asset in 1993 if in 1973 it was worth

\$40,000

$\$ 38,796$
$\$ 40,000$
$\$ 38,976$
$\$ 39,679$
$\$ 36,796$

Validate

Solution:

Be careful, the value of the asset didn't stay the same after the two changes in the value. In the first 10 years, the value decreased by

16 \%: 40,000 × 0.84=33,600

. Then, in the next ten years the value increased by

16 \%: 33,600 × 1.16=38,976

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