GMAT Quantitative Reasoning Practice Test 3

Question : 90 of 100

Marks: +1, -0

An air-conditioning unit costs

\$470

. On December there was a discount for Christmas of 16%. Six months later, the holiday season was over so the company raised the price of the air-conditioning by 16%. How much will an air-conditioning unit cost in November?

$\$ 458$
$\$ 470$
$\$ 472$
$\$ 484$
$\$ 491$

Validate

Solution:

Pay attention, when you raise a number by X% and then you reduce X% you don’t get the original number again because the second time you took X% off you reduced it from a larger number thus answer

\$458

is not the correct one, let’s check:

470×0.84=394.8

394.8×1.16=

approximately

\$ 458

.
A simpler way to solve this problem is by knowing that the price would be lower than the original price because we increased and decreased the same amount of percentage.

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