Solutions

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Question

At the end of each year, the value of a certain antique watch is “c” percent more than its value one year earlier, where “c” has the same value each year. If the value of the watch was “k” dollars on January 1, 1992, and “m” dollars on January 1, 1994, then in terms of “m” and “k”, what was the value of the watch, in dollars, on January 1, 1995?


 

Option A:

m+1/2(m-k) B. m+1/2((m-k)/k)m C. (m*sqrt(m))/sqrt(k) D. m^2/2k; E. km^2

Option B:

m+1/2((m-k)/k)m

Option C:

(m*sqrt(m))/sqrt(k)

Option D:

m^2/2k

Option E:

km^2

Difficulty Level

Hard

Solution

Option C is the correct answer.


Option Analysis

Price in 1992 – k;

Price in 1993 – k∗(1+(c/100));

Price in 1994 – k∗(1+(c/100))^2=m –> (1+(c/100))=√(m/k);

Price in 1995 – m*(1+(c/100)) = m *√(m/k)


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