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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

A part-time employee whose hourly wage was increased by 25 [#permalink]

Show Tags

22 Oct 2006, 08:25

1

This post received KUDOS

2

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

5% (low)

Question Stats:

82% (02:41) correct
18% (01:29) wrong based on 143 sessions

HideShow timer Statistics

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?

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.

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% _________________

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)

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

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%.

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 http://gmatclub.com/forum/kudos-what-are-they-and-why-we-have-them-94812.html

Re: A part-time employee whose hourly wage was increased by 25 [#permalink]

Show Tags

26 Aug 2015, 21:32

Hours * Wage per hour = Wage

New Wage - Hours * 1.25 * Wage per hour = 1.25 * Wage

So, New Wage = 1.25 * Old Wage Now, forget Hours or Wage per hour. We need to decrease New Wage to make it equal to Old Wage. So % decrease is (New Wage - Old Wage)/New Wage = (1.25 - 1)/1.25 = 0.25/1.25 = 1/5 = 20% _________________

Its not over..

gmatclubot

Re: A part-time employee whose hourly wage was increased by 25
[#permalink]
26 Aug 2015, 21:32

Excellent posts dLo saw your blog too..!! Man .. you have got some writing skills. And Just to make an argument = You had such an amazing resume ; i am glad...

So Much $$$ Business school costs a lot. This is obvious, whether you are a full-ride scholarship student or are paying fully out-of-pocket. Aside from the (constantly rising)...