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

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Company R's annual profit has increased by a constant amount each [#permalink] New post 02 Jul 2004, 21:26
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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.
[Reveal] Spoiler: OA

Last edited by Bunuel on 19 May 2015, 04:57, edited 1 time in total.
Renamed the topic, edited the question and added the OA.
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Re: Company R's annual profit has increased by a constant amount each [#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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Re: Company R's annual profit has increased by a constant amount each [#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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Re: Company R's annual profit has increased by a constant amount each [#permalink] New post 03 Jul 2004, 06:38
U R right Paul, I fell for the trap :oops:
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Re: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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: Company R's annual profit has increased by a constant amount each [#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?
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Re: Company R's annual profit has increased by a constant amount each [#permalink] New post 18 May 2015, 20:56
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Re: Company R's annual profit has increased by a constant amount each   [#permalink] 18 May 2015, 20:56
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