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The average price of an antique car increases over the years. If from 1990 to 1996, the price of the car increased by 13% and from 1996 to 2001 it increased by 20%, what is the price of the car in 2001 if the price in 1990 was $11,500?
  • a)
    $15,594
  • b)
    $15,322
  • c)
    $14,786
  • d)
    $14,543
  • e)
    $12,988
Correct answer is option 'A'. Can you explain this answer?
Verified Answer
The average price of an antique car increases over the years. If from ...
The best answer is A.
The price in 1990 was 11,500. In 1996 the price is (11,500 x 1.13 = 12,995).
The price we are looking for, in 2002, is (12,995 x 1.2 = $15,594).
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Most Upvoted Answer
The average price of an antique car increases over the years. If from ...
Given:
Price of the car in 1990 = $11,500
Increase in price from 1990 to 1996 = 13%
Increase in price from 1996 to 2001 = 20%

To Find: Price of the car in 2001

Solution:
Let the initial price of the car be P.

Price of the car in 1990 = $11,500
Therefore, P = $11,500

Increase in price from 1990 to 1996 = 13%
Price of the car in 1996 = P + (13/100)*P = P*1.13

Increase in price from 1996 to 2001 = 20%
Price of the car in 2001 = Price in 1996 + (20/100)*Price in 1996
= P*1.13 + (20/100)*P*1.13
= P*1.13*1.2
= P*1.356

Substituting P = $11,500, we get:
Price of the car in 2001 = $11,500*1.356 = $15,594

Therefore, the price of the car in 2001 is $15,594.

Answer: (a) $15,594
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The average price of an antique car increases over the years. If from 1990 to 1996, the price of the car increased by 13% and from 1996 to 2001 it increased by 20%, what is the price of the car in 2001 if the price in 1990 was $11,500?a)$15,594b)$15,322c)$14,786d)$14,543e)$12,988Correct answer is option 'A'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about The average price of an antique car increases over the years. If from 1990 to 1996, the price of the car increased by 13% and from 1996 to 2001 it increased by 20%, what is the price of the car in 2001 if the price in 1990 was $11,500?a)$15,594b)$15,322c)$14,786d)$14,543e)$12,988Correct answer is option 'A'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for The average price of an antique car increases over the years. If from 1990 to 1996, the price of the car increased by 13% and from 1996 to 2001 it increased by 20%, what is the price of the car in 2001 if the price in 1990 was $11,500?a)$15,594b)$15,322c)$14,786d)$14,543e)$12,988Correct answer is option 'A'. Can you explain this answer?.
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