GRE General TestQuantitative ReasoningMedium
A financial analyst is tracking the quarterly revenue of a company. The revenue in Q1 was $120,000. In Q2, the revenue increased by 15% compared to Q1. In Q3, the revenue decreased by 10% compared to Q2. What was the company's revenue in Q3?
- A$124,200
- B$125,400
- C$132,000
- D$138,000
Show answer & explanationAnswer & explanation
Correct answer: A. $124,200
Q1 revenue = $120,000. Q2 revenue = $120,000 * (1 + 0.15) = $120,000 * 1.15 = $138,000. Q3 revenue = $138,000 * (1 - 0.10) = $138,000 * 0.90 = $124,200.
Why the other options are wrong
- B. This result is incorrect; likely a calculation error after the decrease.
- C. This is the Q1 revenue if it only increased by 10% from some prior quarter, not Q2.
- D. This is the Q2 revenue, not Q3.
Percentage Change
Percentage change describes the relative difference between an old value and a new value, expressed as a percentage of the old value.
- Increase: New Value = Old Value * (1 + percentage increase).
- Decrease: New Value = Old Value * (1 - percentage decrease).
- Percentage changes are applied sequentially, not to the original value if there are multiple changes.
Memory trick: Apply changes one by one, like building blocks on the last result.