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GRE Practice of the Day - 26th June 2020

GRE Practice of the Day 26-June-2020-2
  1. For how many years did expenses exceed revenue?
The point corresponding to expenses is above the point corresponding to revenues for only two years, 2010 and 2011.
  1. The percent change in gross profit from 2015 to 2016 is approximately what percent of the percent change in gross profit from 2016 to 2017?
  1. 240%
  2. 60%
  3. 53%
  4. 42%
  5. 17%

Solution: First, calculate the percent change in profit for the two time periods.
In 2015, the profit was $24 million − $18 million = $6 million.
In 2016, the profit was $26 million − $21 million = $5 million.
In 2017, the profit was $18 million − $15 million = $3 million.

The approximate percent change in profits from 2015 to 2016 was: (6-5)/6 x 100 = 16.66%

The approximate percent change in profits from 2016 to 2017 was: (5-3)/5 x 100 = 40%

The Question asks: The percent change in gross profit from 2015 to 2016 (16.66%) is approximately what percent of the percent change in gross profit from 2016 to 2017 (40%)?

So the question essentially is 16.66 is what % of 40?

16.66/40 x 100 = 41.66%

  1. If the revenues in 2019 were $4 million less, and the expenses for 2019 were $5 million more, then the average (arithmetic mean) annual profit for the 10 years shown would be approximately how much less?
  1. $100,000
  2. $400,000
  3. $500,000
  4. $700,000
  5. $900,000

Solution: This is a trick question, the smart test taker understands that it is just a matter of factoring in the change. You do NOT need to find the profit for all the years.
In 2019, the Profit was 29 – 18 = 11 million.
But revenue has fallen by 4m to become 25m and expenses have risen by 5m to become 23m
Profit = 25 – 23 = 2m from the actual 11m
Change in profit for 2019 = 11 – 2 = $9 million
The change would distribute evenly throughout the 10-year period, the change in the average would be 9m/10 = $900,000

  1. In 2010, Product D and Product A together contributed how many millions of dollars?

In 2010, Product D and Product A together contributed 28% and 17% = 45% of the total 6 million.
45/100 x 6 = 2.7m

  1. What was the increase in the contribution of Product E from 2010 to 2015
  1. $6.50 million
  2. $4.95 million
  3. $6.05 million
  4. $7.87 million
  5. $5.14 million

In 2010, Product E contributed 13% of the 7 million revenue = $910,000.
In 2015, Product E contributed 29% of the 24 million revenue = $6,960,000.
Change = $6,050,000

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Q. If the function f(x) is defined as f(x) = 3(x + 1) + 7, then f(a − 2) =

  1. 3a + 5
  2. 3a – 9
  3. 3a + 10
  4. 3a – 4
  5. 3a + 4
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