Cracking the New GRE, 2012 Edition by Princeton Review

Author:Princeton Review
Language: eng
Format: mobi
ISBN: 9780375427534
Publisher: Random House Information Group
Published: 2011-05-31T10:00:00+00:00

What number goes on the

bottom of the fraction?

19 of 20

Vandelay Industries reported a $6,000 profit over the three-month period from March to May of the current year. If, over the previous three-month period, Vandelay Industries realized a $3,500 profit, by approximately what percent did its profit increase?

25%

32%

42%

55%

70%

Here’s How to Crack It

Let’s use the percent change formula we just learned. The first step is to find the difference between the two numbers. The initial profit was $3,500 and the final profit is $6,000. The difference between these two numbers is: 6,000 – 3,500 = 2,500. Next, we need to divide this number by the original, or starting, value.

One way to help you figure out what value to use as the original value is to check to see whether you’re dealing with a percent increase or a percent decrease question. Remember that on a percent increase question, you should always use the smaller of the two numbers as the denominator and that on percent decrease you need to use the larger of the two numbers as the denominator. Because here we want to find the percent increase, the number we want to use for our denominator is 3,500. So our percent increase fraction looks like this: . We can reduce this down to by dividing by 100, and reduce even further by dividing by 5. This leaves us with , which is approximately 70% (remember, the fraction bar means divide, so if you divide 5 by 7, you’ll get .71). Thus, choice (E) is the answer.

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