GMAT Quantum

Boost your GMAT Quant Score

  • Home
  • Study
    • Work Flow
    • GMAT Course
    • OG GMAT Guides
    • Official Resources
    • Strategy
  • Blog
  • About
    • Contact
    • Testimonials
    • About Me
  • Login
You are here: Home / Official GMAT Guides / 2018 Official GMAT Guide /

Question 130 Problem Solving 2018 GMAT Official Guide

Question 130 Problem Solving 2018 GMAT Official Guide

 
Video explanation: Alex deposited x dollars into a new account that earned 8…

Comments

  1. Aditi Gupta says

    November 14, 2019 at 2:33 AM

    Why do we multiply 1.08 as 8% rate for the second year. Shouldn’t it be 2.08x * 0.08?

    Reply
    • GMAT Quantum says

      November 14, 2019 at 5:45 AM

      In general if a quantity $n$ is increased by say $7$ percent, then the outcome is the sum of the original $n$ and the increment, which is $0.07n$, and this yields $1.07n$. Essentially we are saying that with a $7$ percent increase the original quantity is now $107$ percent of the original.

      In this particular question, the quantity $(2.08x)(0.08)$ you mentioned is the increment and this needs to be added to the balance of $2.08x$, which is equivalent to $(2.08x)(1.08)$. I hope this makes sense.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Email
  • Facebook
  • Twitter
  • YouTube

[M. Dabral, Quantum Education Inc.]. All rights reserved. GMAT™, GMATPrep™, and GMATFocus™ are the registered trademarks of the Graduate Management Admission Council™. The Graduate Management Admission Council™ does not endorse, nor is it affiliated in any way with the owner or any content of this web site.