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A fund was invested 25 years ago. Its value is approximately

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A fund was invested 25 years ago. Its value is approximately [#permalink]  15 May 2019, 05:41
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100% (00:06) correct 0% (00:00) wrong based on 2 sessions
A fund was invested 25 years ago. Its value is approximately \$300,000 now. If the value of the fund doubled each year for the last 10 years, how long ago was the value of the fund exactly half of the current value?

(A) Half a year ago.

(B) 1 year ago.

(C) 2 years ago.

(D) 5 years ago.

(E) 10 years ago.
[Reveal] Spoiler: OA

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Re: A fund was invested 25 years ago. Its value is approximately [#permalink]  15 May 2019, 05:53
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A fund was invested 25 years ago. Its value is approximately \$300,000 now. If the value of the fund doubled each year for the last 10 years, how long ago was the value of the fund exactly half of the current value?

With all GRE word problems, first ID the specific value being sought, in this case - how long ago was the fund half of the current value?

Then, begin reading the problem taking notes and doing obviously necessary calculations as you go. First we see that a fund was invested 25 years ago. This is currently irrelevant, so move on.

Next, we discover that the current fund value = \$300,000.

Lastly, we are told that the value of the fund doubled each year for the last ten years. So, each prior year is = ½ the subsequent year.

Using this information we can find that the value of the fund in the year prior to the current is equal to \$300,000 ÷ 2 = \$150,000.

Remember the question asked how long ago was the fund half of its current value. \$150,000 = ½ x 300,000 and was the value one year ago, so select the correct answer, choice B.
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Stefan Maisnier

Re: A fund was invested 25 years ago. Its value is approximately   [#permalink] 15 May 2019, 05:53
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