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During a 7-year period the profits of Midas, Inc. changed by

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During a 7-year period the profits of Midas, Inc. changed by [#permalink]

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28 Mar 2010, 01:57
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During a 7-year period the profits of Midas, Inc. changed by what percent from the sixth year to the seventh year?

(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.
[Reveal] Spoiler: OA

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28 Mar 2010, 05:23
ankithakhu wrote:
During a 7-year period the profits of Midas, Inc. changed by what percent from the sixth year to the seventh year?
(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

(p7-p6)/p6??
st 1) p7 = p3 * 1.5
Not sufficient
st 2) increase is same for subsequent years.
not sufficient

combining
let increase be a
so p7=p6 + a = p5+2a = p4 + 3a = p3 + 4a = p3*1.5
a = p3/8
but still cannot figure out (p7-p6)/p6

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28 Mar 2010, 07:06
ankithakhu wrote:
During a 7-year period the profits of Midas, Inc. changed by what percent from the sixth year to the seventh year?
(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

1 & 2 alone are insufficient.
Combining, let x be increase in profit each year.
p7 = p3+4x
p7-p3 = 4x
50 = 4x
x = 12.5%
hence sufficient.
Its C.
Whats the OA.
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28 Mar 2010, 11:32
This increase is the actual increase not increase in %.
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28 Mar 2010, 11:36
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The OA is C.
Combining the two statements, Let P be the Profit in the third year and x be the increase in profit which is constant. Thus profit in the 6th year = P+3x
and Profit in the 7th year = P+4x
Also from statement 1 Profit in 7th year =1.5 times profit in 3rd year
thus P+4x = 1.5P
thus x=P/8

Hence the percentage increase of 7th year over 6th can now be known.

Hope this is clear.
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29 Mar 2010, 02:32
Good question Ankit
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29 Mar 2010, 05:47
Thanks
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05 Apr 2010, 09:16
Damn... I was caught in the trap.

Is this a relatively high level question or not?
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05 Apr 2010, 10:35
No its a simple question. which reinstates the fact that one needs to be really careful, alert and consider all possibilities.
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Re: During a 7-year period the profits of Midas, Inc. changed by [#permalink]

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25 Aug 2013, 06:33
ankithakhu wrote:
During a 7-year period the profits of Midas, Inc. changed by what percent from the sixth year to the seventh year?
(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

This is an interesting old question,But I think needs expert opinion.

we need to know the profits of 6th and 7th year in order to answer this question.

(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
Nothing about the sixth year so Insufficient

(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

Initially I thought this was sufficient as profits of 6 and 7 year seemed to be same, but that is not so.

The original profits of 6 and 7 year may be different but increase may be same, hence we do not know that actual 6 and 7 year profits.

1+2
from 1
Let 3 year profit be x and 7 year profit is 1.5x still we know nothing about 6 year

from 2 : increase in profits were the same each year , so let the increase in profits be y each year

year ---- profit
3 ------- x
4 ------- x+y
5 ------- x+y+y = x+2y
6 ------- x+3y
7 ------- x+4y

Now we know 6 year profit is x+3y and 7 year profit is x+4y

also we know x+4y=1.5x ( 7 year profit is 1.5 times 3 year profit, we have taken 3 year profit to be x)
on solving x+4y=1.5x we get x= 8y

now 6 year profit is 11y ( from chart above )and 7 year profit is 12y
so profit % increase from 6 to 7 year $$\frac{12y-11y}{11y}*100 =\frac{100}{11} = 9.09$$

We know C is is the answer, but can any one tell me if I have arrived at the correct percentage change in profit?
Thanks
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Re: During a 7-year period the profits of Midas, Inc. changed by [#permalink]

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25 Aug 2013, 10:28
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Expert's post
stne wrote:
ankithakhu wrote:
During a 7-year period the profits of Midas, Inc. changed by what percent from the sixth year to the seventh year?
(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

This is an interesting old question,But I think needs expert opinion.

we need to know the profits of 6th and 7th year in order to answer this question.

(1) The profits of Midas, Inc. during the seventh year were 50 percent greater than the profits during the third year.
Nothing about the sixth year so Insufficient

(2) The increase in the profits of Midas, Inc. was the same for each year during the 7-year period.

Initially I thought this was sufficient as profits of 6 and 7 year seemed to be same, but that is not so.

The original profits of 6 and 7 year may be different but increase may be same, hence we do not know that actual 6 and 7 year profits.

1+2
from 1
Let 3 year profit be x and 7 year profit is 1.5x still we know nothing about 6 year

from 2 : increase in profits were the same each year , so let the increase in profits be y each year

year ---- profit
3 ------- x
4 ------- x+y
5 ------- x+y+y = x+2y
6 ------- x+3y
7 ------- x+4y

Now we know 6 year profit is x+3y and 7 year profit is x+4y

also we know x+4y=1.5x ( 7 year profit is 1.5 times 3 year profit, we have taken 3 year profit to be x)
on solving x+4y=1.5x we get x= 8y

now 6 year profit is 11y ( from chart above )and 7 year profit is 12y
so profit % increase from 6 to 7 year $$\frac{12y-11y}{11y}*100 =\frac{100}{11} = 9.09$$

We know C is is the answer, but can any one tell me if I have arrived at the correct percentage change in profit?
Thanks

Yes, the actual increase is 100/11%.
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Re: During a 7-year period the profits of Midas, Inc. changed by   [#permalink] 25 Aug 2013, 10:28
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