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Expanded Place-Value Algebra

GMAT glossary · Playbook

Definition

In Advanced Interest Models and Financial Algebra (and digit-coded principals), write a number as 100a+10b+c (or the matching place sum) before rate algebra.

Expanded Place-Value Algebra in plain English

Pull Expanded Place-Value Algebra inside Advanced Interest Models and Financial Algebra when digits (or a digit-coded principal) are unknowns and you need the true base-10 value before interest math. Structural clues: tens/units/hundreds digit, digit reversal, place-value expansion of a principal. Blueprint: write the number as 100a+10b+c (or 10a+b for two digits), substitute to eliminate intermediate digit variables, then apply the interest or comparison equation. Why it beats the long way: talking about digits without place values mixes a with 10a and wrecks any Financial Algebra setup that depends on the true magnitude. Micro-example: Two-digit principal 10a+b with reverse 10b+a differs by 9(a-b). If the interest comparison needs that difference equal to 36, then a-b=4 and candidates like 51 / 15 fall out before you ever touch the rate.

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