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From 2005 through 2014, the number of music CDs sold in the United States declined each year by approximately 15%...

GMAT Advanced Math : (Adv_Math) Questions

Source: Official
Advanced Math
Nonlinear functions
MEDIUM
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From 2005 through 2014, the number of music CDs sold in the United States declined each year by approximately \(15\%\) of the number sold the preceding year. In 2005, approximately \(600\) million CDs were sold in the United States. Of the following, which best models \(\mathrm{C}\), the number of millions of CDs sold in the United States, \(\mathrm{t}\) years after 2005?

A

\(\mathrm{C = 600(0.15)^t}\)

B

\(\mathrm{C = 600(0.85)^t}\)

C

\(\mathrm{C = 600(1.15)^t}\)

D

\(\mathrm{C = 600(1.85)^t}\)

Solution

1. TRANSLATE the problem information

  • Given information:
    • CD sales decline by 15% each year
    • Initial sales in 2005: 600 million CDs
    • t = years after 2005
    • Need to find model for C (millions of CDs sold)

2. INFER what "decline by 15%" means mathematically

  • If sales decline by 15% each year, then each year retains:
    \(\mathrm{100\% - 15\% = 85\%}\) of the previous year
  • This means we multiply by 0.85 each year
  • This describes exponential decay with retention rate 0.85

3. INFER the exponential model structure

  • Exponential decay follows: \(\mathrm{C = (initial\ value) \times (retention\ rate)^t}\)
  • Initial value = 600 million
  • Retention rate = 0.85
  • Time variable = t
  • Therefore: \(\mathrm{C = 600(0.85)^t}\)

4. APPLY CONSTRAINTS to eliminate incorrect choices

  • For exponential decay, the base must be between 0 and 1
  • Choice A: 0.15 is between 0 and 1 ✓, but represents what's lost, not what remains
  • Choice B: 0.85 is between 0 and 1 ✓ and represents what remains
  • Choices C & D: 1.15 and 1.85 are > 1, indicating growth not decay ✗

Answer: B. \(\mathrm{C = 600(0.85)^t}\)




Why Students Usually Falter on This Problem

Most Common Error Path:

Weak TRANSLATE skill: Students focus on the "15%" and mistakenly use 0.15 as the base instead of understanding that declining by 15% means retaining 85%.

Their reasoning: "It says 15% decline, so the base should be 0.15"

This may lead them to select Choice A (\(\mathrm{C = 600(0.15)^t}\))


Second Most Common Error:

Conceptual confusion about decay vs. growth: Students mix up the direction of change and think "15% decline" should be modeled as "15% added to 100%" giving 115% = 1.15.

Their reasoning: "Decline by 15% means we use 1.15 somehow"

This may lead them to select Choice C (\(\mathrm{C = 600(1.15)^t}\))


The Bottom Line:

The key insight is recognizing that exponential decay requires understanding what percentage remains after each decline, not what percentage is lost. Declining by 15% means keeping 85%, so the base is 0.85, not 0.15.

Answer Choices Explained
A

\(\mathrm{C = 600(0.15)^t}\)

B

\(\mathrm{C = 600(0.85)^t}\)

C

\(\mathrm{C = 600(1.15)^t}\)

D

\(\mathrm{C = 600(1.85)^t}\)

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