GRE Sample Test 5 Quantitative Reasoning 1

Question : 8 of 20

Marks: +1, -0

The retail price of a bookshelf is y dollars. The retailer will either add

\$

5 to the retail price and then mark the price down by z% or will mark the price down by z% and then add

\$

5 to the new price.
Quantity A : The price of the bookshelf after the retailer adds

\$

5 to the retail price and then marks the new price down by z%.
Quantity B : The price of the bookshelf after the retailer marks the original price down by z% and then add

\$

to the new price.

Validate

Solution:

Choose values. Let y = 100, and let z = 20. Now, evaluate Quantity A. With these values, a

\$

5 increase will lead to a bookshelf that costs

\$

105. After a 20% discount, the price of the bookshelf will be .8(105) = 84. Now, evaluate Quantity B. With these values, a 20% reduction in the retail price will result in a new price of .8(100) = 80. 80 + 5 = 85. Quantity B is greater.

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