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Company R's annual profit has increased by a constant amount

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Company R's annual profit has increased by a constant amount [#permalink] New post 02 Jul 2004, 21:26
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33% (01:01) correct 67% (01:35) wrong based on 2 sessions
15. Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991 ?
(1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.
(2) Company R's annual profit has increased by $7,500 each year since 1985.
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 [#permalink] New post 02 Jul 2004, 23:12
A.
one can calculate the rate of profit increase per year.

rate = (profit2-profit1)/no of years

calculate profit increase. = rate*no of years

Add the profit increase to the base profit to get the new profit.
So A is sufficient.

B does not give base profit. Only rate is given. So insufficient.

Ans is A.
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 [#permalink] New post 03 Jul 2004, 00:05
agree with A. This is a problem where after reading 1), you transpose it to 2) and think that you have the base amount.
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 [#permalink] New post 03 Jul 2004, 06:38
U R right Paul, I fell for the trap :oops:
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Re: DS-1 [#permalink] New post 03 Jul 2004, 07:27
Bhai wrote:
15. Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991 ?
(1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.
(2) Company R's annual profit has increased by $7,500 each year since 1985.


I will go with D

(1) We can know what is the increased amount for for years, and as the profit inceases constantly. we can get the increase rate per year. sufficient

(2) obvisoully, states the increase amount per year.sufficient
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Re: DS-1 [#permalink] New post 03 Jul 2004, 07:29
dr_sabr wrote:
Bhai wrote:
15. Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991 ?
(1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.
(2) Company R's annual profit has increased by $7,500 each year since 1985.


I will go with D

(1) We can know what is the increased amount for for years, and as the profit inceases constantly. we can get the increase rate per year. sufficient

(2) obvisoully, states the increase amount per year.sufficient

Can you answer the underlined question with ONLY B? :wink:
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 [#permalink] New post 03 Jul 2004, 07:29
cbrf3 wrote:
U R right Paul, I fell for the trap :oops:


Ooops :oops: I fell also in the same trap. you are right Paul
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Re: DS-1 [#permalink] New post 17 Aug 2010, 08:30
Please explain the logic behind the ans A? I would assume the question states constant profit - statement 2 states has increased by 7,500 since 1985...
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Re: DS-1 [#permalink] New post 17 Aug 2010, 13:28
cmugeria wrote:
Please explain the logic behind the ans A? I would assume the question states constant profit - statement 2 states has increased by 7,500 since 1985...



Statement 1: In 1985, profit was $212,000 and 1989 profit was 242,000. So each year profit was (242,000-212000)/4 = 7500. So it is sufficient to find the profit in 1991 by adding 15000 to 242,000.
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Re: DS-1 [#permalink] New post 17 Aug 2010, 13:45
I think only A though I'm not the expert in DS more in SC ;)
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Re: DS-1 [#permalink] New post 17 Aug 2010, 17:07
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?
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Re: DS-1 [#permalink] New post 17 Aug 2010, 20:17
cmugeria wrote:
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?


Answer this: By knowing only the profit amount, how are you going to calculate the annual profit? Get it?
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Re: DS-1 [#permalink] New post 17 Aug 2010, 20:43
cmugeria wrote:
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?


Clear A.

You cant carry information from Statement 1.
Stmt 2 just gives us the rate, but what is the initial base?
Re: DS-1   [#permalink] 17 Aug 2010, 20:43
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