GMAT OFFICIAL GUIDE PS

Solution:

The problem is testing us on using the percent change formula:

(New Value – Old Value)/Old Value x 100

We are given:

February sales this year = 385 million

February sales last year = 320 million

We need to determine the percent increase between sales from last year to sales this year.

Thus, the new value = 385 million and the old value = 320 million. Let’s plug them into our percent change formula.

(New Value – Old Value)/Old Value x 100

[(385 – 320)/320] x 100

65/320 x 100

13/64 x 100 ≈ 13/65 x 100 ≈ 1/5 x 100 ≈ 20%.

Answer: C

About The Author

Jeffrey Miller is the head GMAT instructor for Target Test Prep. Jeff has more than fourteen years of experience in the business of helping students with low GMAT scores hurdle the seemingly impossible and achieve the scores they need to get into the top 20 business school programs in the world, including HBS, Stanford, Wharton, and Columbia. Jeff has cultivated many successful business school graduates through his GMAT instruction, and will be a pivotal resource for many more to follow.