It is currently 19 Jun 2019, 23:36

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# If the tax in CA increases by 20% each year for the next 4 y

Author Message
TAGS:
Founder
Joined: 18 Apr 2015
Posts: 6920
Followers: 114

Kudos [?]: 1344 [0], given: 6318

If the tax in CA increases by 20% each year for the next 4 y [#permalink]  27 Jul 2018, 09:00
Expert's post
00:00

Question Stats:

50% (02:04) correct 50% (02:18) wrong based on 8 sessions
Attachment:

electricity.jpg [ 31.28 KiB | Viewed 390 times ]

If the tax in CA increases by 20% each year for the next 4 years, and the energy cost in CA remains the same each year for the next 4 years, what will be the positive difference, in dollars, between the CA tax and the CA energy cost in 4 years?

A. 0

B. 1.34

C. 2.59

D. 3.12

E. It cannot be determined from the information given

Kudos for R.A.E.
[Reveal] Spoiler: OA

_________________
Director
Joined: 20 Apr 2016
Posts: 908
WE: Engineering (Energy and Utilities)
Followers: 11

Kudos [?]: 671 [0], given: 148

Re: If the tax in CA increases by 20% each year for the next 4 y [#permalink]  27 Jul 2018, 10:37
Carcass wrote:
Attachment:
electricity.jpg

If the tax in CA increases by 20% each year for the next 4 years, and the energy cost in CA remains the same each year for the next 4 years, what will be the positive difference, in dollars, between the CA tax and the CA energy cost in 4 years?

A. 0

B. 1.34

C. 2.59

D. 3.12

E. It cannot be determined from the information given

Kudos for R.A.E.

From the graph the Tax in CA = 9 and the energy cost = 20

Now tax in CA at the end of 4th year = $$9(1 + \frac{20}{100})^4 = 9 * (1.2 * 1.2 * 1.2 * 1.2) = 9 * 1.44 * 1.44 = 18.66$$

so the positive difference between the energy cost and the tax in dollars = $$20 - 18.66 = 1.34$$

I.e option B
_________________

If you found this post useful, please let me know by pressing the Kudos Button

Rules for Posting https://greprepclub.com/forum/rules-for ... -1083.html

Re: If the tax in CA increases by 20% each year for the next 4 y   [#permalink] 27 Jul 2018, 10:37
Display posts from previous: Sort by