Find all School-related info fast with the new School-Specific MBA Forum

It is currently 17 Sep 2014, 03:57

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A part-time employee whose hourly wage was increased by 25

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Director
Director
User avatar
Joined: 05 Feb 2006
Posts: 904
Followers: 1

Kudos [?]: 33 [0], given: 0

GMAT Tests User
A part-time employee whose hourly wage was increased by 25 [#permalink] New post 22 Oct 2006, 07:25
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

83% (02:53) correct 17% (01:01) wrong based on 30 sessions
A part-time employee whose hourly wage was increased by 25 percent decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?

(A) 12.5%
(B) 20%
(C) 25%
(D) 50%
(E) 75%
[Reveal] Spoiler: OA

Last edited by Bunuel on 11 Feb 2014, 08:34, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
Director
Director
avatar
Joined: 01 Oct 2006
Posts: 500
Followers: 1

Kudos [?]: 16 [0], given: 0

GMAT Tests User
 [#permalink] New post 22 Oct 2006, 08:09
Let original hourly wage be x and let the no of hours worked be y
Total wage will be =x*y
After the increment the wage will be=1.25 x
Now we need to find number of hours worked so that

x*y=1.25x*z i.e z=4/5 y

%decrease = (y-4/5y)/y *100=100/5=20%.
Thus my answer is B.

Correct me if I am wrong.
Manager
Manager
avatar
Joined: 28 May 2011
Posts: 196
Location: United States
Concentration: General Management, International Business
GMAT 1: 720 Q49 V38
GPA: 3.6
WE: Project Management (Computer Software)
Followers: 2

Kudos [?]: 41 [0], given: 7

GMAT Tests User
Re: Number of hours worked [#permalink] New post 23 Jul 2011, 21:37
enigma123 wrote:
A part time employee whose hourly wage was increased by 25% decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?

Ans: 20%

Can anyone please tell me the approach to solve this question?


Number of Hours he works today = N
Hourly Wage today = P


Number of Hours he works today = M
Hourly wage after increase = P + 25% = P(1+25/100) = P * (5/4)

To keep the total wage constant :
N*P = M * P * (5/4)

M / N = 4/5
(N-M) / N = 1/5 (fraction by which Number of hours can be decreased while keeping total wage same)

To get the percentage , multiply both side by 100

percent of the number of hours worked be reduced ((N-M) *100/ N) = 100/5 = 20%
_________________

-------------------------------------------------------------------------------------------------------------------------------
http://gmatclub.com/forum/a-guide-to-the-official-guide-13-for-gmat-review-134210.html
-------------------------------------------------------------------------------------------------------------------------------

Intern
Intern
avatar
Joined: 04 May 2011
Posts: 9
Followers: 0

Kudos [?]: 1 [0], given: 7

Re: Number of hours worked [#permalink] New post 23 Jul 2011, 21:58
A = hours of work BEFORE wage increase
B= hours of work AFTER wage increase
when answering about increase or decrease, we need to make the denomenator being the old one.
Here we know that to get the same total wage, A must be 1.25 times of B;
(x is a multiple of #hours, it will get cancel out)

Decrease of hrs = (Bx-Ax)/Ax = (1-1.25)/1.25 = 0.2 = 20%
Manager
Manager
avatar
Joined: 25 Sep 2010
Posts: 85
Schools: HBS, LBS, Wharton, Kelloggs, Booth
Followers: 0

Kudos [?]: 2 [0], given: 15

Re: Number of hours worked [#permalink] New post 04 Aug 2011, 04:28
Let initial salary be X. Then new salary is 1.25X.
Let the initial no. of hours = h1 and final no. of hours = h2;
given:
X(h1) = 1.25X(h2)
=> h1 = 1.25(h2) (cancelling X on both sides)
We need to find the percent change in no. of hours:

Formula:
Percent change = (New - Original)/Original * 100
=> (h2 - h1)/h1 * 100
Now,
We know that h1 = 1.25(h2)
=> h2/h1 = 1/1.25;
Using dividendo;
we get (h2 - h1)/h1 = (1-1.25)/1.25 ------(1)
We get our answer by multiplying (1) with 100
Expert Post
Veritas Prep GMAT Instructor
User avatar
Joined: 16 Oct 2010
Posts: 4766
Location: Pune, India
Followers: 1112

Kudos [?]: 5039 [0], given: 164

Re: Number of hours worked [#permalink] New post 04 Aug 2011, 21:38
Expert's post
enigma123 wrote:
A part time employee whose hourly wage was increased by 25% decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?

Ans: 20%

Can anyone please tell me the approach to solve this question?


Consider this:

Total Income = Hourly Wage * No of hours
If we want to keep the total income same,

Hourly Wage * No of hours = New Hourly Wage * New No of hours
Hourly Wage * No of hours = 5/4 * Hourly Wage * New No of hours

So New No of hours/No of hours = 4/5
A decrease of 1/5 i.e. 20%

Or think of it this way:
Since total income has to remain the same, Hourly wage *No of hours has to remain the same. If Hourly wage gets multiplied by 5/4 (an increase of 25%), no of hours should be multiplied by 4/5 to keep their product same i.e. no of hours should be reduced by 1/5 i.e. 20%.

For more on fraction-percentage conversions, check:
http://www.veritasprep.com/blog/2011/02 ... rcentages/
_________________

Karishma
Veritas Prep | GMAT Instructor
My Blog

Save $100 on Veritas Prep GMAT Courses And Admissions Consulting
Enroll now. Pay later. Take advantage of Veritas Prep's flexible payment plan options.

Veritas Prep Reviews

Manager
Manager
avatar
Joined: 04 Jun 2011
Posts: 193
Followers: 0

Kudos [?]: 33 [0], given: 21

GMAT Tests User
Re: Number of hours worked [#permalink] New post 04 Aug 2011, 23:23
Although most of the others have provided their explanations using formulae, if you are not comfortable, you can use the below to solve the problem.

Its the same as the formulaes depicted below but i guess easier to undestand.

let the employee work for $ 100 an hour and a total of 100 hours per month.

His current salary will therefore be 100*100

his salary increases by 25 % --> new salary = 125

since total salary is same
therefore 100*100 = 125 * x

where x is the new hours he needs to work to maintain his monthly inclome


calculating u find x = 80 --> the hours has decreased from 100 to 80 or a 20 % decrease
1 KUDOS received
Director
Director
avatar
Joined: 01 Feb 2011
Posts: 770
Followers: 14

Kudos [?]: 82 [1] , given: 42

GMAT Tests User
Re: Number of hours worked [#permalink] New post 05 Aug 2011, 07:33
1
This post received
KUDOS
Hourly Wage

Initial New

$P $125P/100

X hours <X (lets say Y)

given

PX = (125P/100)Y

=> X = (125/100)Y

% decrease = ((x - y)/x )*100


= 20%
1 KUDOS received
Intern
Intern
avatar
Joined: 27 Feb 2011
Posts: 48
Followers: 0

Kudos [?]: 2 [1] , given: 9

Re: Number of hours worked [#permalink] New post 05 Aug 2011, 11:45
1
This post received
KUDOS
w1 * h1 = w2 * h2

w1 * h1 = 1.25 w1 * h2 => h2 = 4 h1/ 5 = 0.8 h1 => 20% decrease
1 KUDOS received
Manager
Manager
User avatar
Status: On...
Joined: 16 Jan 2011
Posts: 189
Followers: 3

Kudos [?]: 35 [1] , given: 62

GMAT Tests User
Re: Number of hours worked [#permalink] New post 05 Aug 2011, 19:47
1
This post received
KUDOS
hahaha...If you read this question and are a consultant who is paid hourly wages....you will think :

Hey, my current hourly rate is 100 $. Now it has increased by 25%.I can reduce the time I work, because I am now earning more and want to spend time on some of my hobbies/free time :D

So how much % time can I work less !!!

100 $ per hr(1 hr) = 125$ per hr(new time in hrs) ==> new time = 100/125 hrs = 100/25.5 = 20/25 = 80/100
Old time = 1 hr

Time decrease = 1-80/100 = 20/100 or 20%

I am not putting any approach, just a practical way I would have seen this problem...
_________________

Labor cost for typing this post >= Labor cost for pushing the Kudos Button
kudos-what-are-they-and-why-we-have-them-94812.html

1 KUDOS received
Manager
Manager
avatar
Joined: 05 Oct 2011
Posts: 169
GMAT 1: 720 Q V
Followers: 7

Kudos [?]: 34 [1] , given: 60

GMAT ToolKit User GMAT Tests User Reviews Badge
Re: Number of hours worked [#permalink] New post 07 Nov 2011, 11:27
1
This post received
KUDOS
By far the quickest way to solve this problem is by using number plugging as the question is asking a percent in the end.

assume:
Employee initial salary = $100
Old hours: 20
New salary = $125
New hours: x

20 * 100 = x * 125
x = 16
Percent of reduction = 4/20 * 100 = 20%

Answer: B
Manager
Manager
avatar
Joined: 21 Aug 2013
Posts: 113
Schools: ISB '15
Followers: 2

Kudos [?]: 9 [0], given: 54

Re: A part-time employee whose hourly wage was increased by 25 [#permalink] New post 11 Feb 2014, 08:24
Hi,
Please add OA. Thanks
_________________

Veritas Prep - 650
MGMAT 1 590
MGMAT 2 640 (V48/Q31)

Please help the community by giving Kudos.

Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 29660
Followers: 3494

Kudos [?]: 26260 [0], given: 2708

Re: A part-time employee whose hourly wage was increased by 25 [#permalink] New post 11 Feb 2014, 08:36
Expert's post
Re: A part-time employee whose hourly wage was increased by 25   [#permalink] 11 Feb 2014, 08:36
    Similar topics Author Replies Last post
Similar
Topics:
2 Experts publish their posts in the topic a part-time employee whose hourly wage was increased by 25% sondenso 16 25 Feb 2008, 01:37
A part-time employee whose hourly wage was increased by 25 700dreamer 5 12 Jul 2007, 18:51
Added to the increase in hourly wages requested last July, ywilfred 2 06 Sep 2005, 06:29
8 Added to the increase in hourly wages requested last July, wild_desperado 13 27 Jun 2005, 00:45
Added to the increase in hourly wages requested last July, WinWinMBA 2 14 May 2005, 12:28
Display posts from previous: Sort by

A part-time employee whose hourly wage was increased by 25

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.