Guy s net income equals his gross income minus his : DS Archive
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 20 Jan 2017, 09:00

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

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

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Guy s net income equals his gross income minus his

Author Message
SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 137 [0], given: 0

Guy s net income equals his gross income minus his [#permalink]

Show Tags

30 Jan 2006, 17:34
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

HideShow timer Statistics

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

Guyâ€™s net income equals his gross income minus his deductions. By what percent did
Guyâ€™s net income change on January 1, 1989, when both his gross income and his
deductions increased?

(1) Guyâ€™s gross income increased by 4 percent on January 1, 1989.
(2) Guyâ€™s deductions increased by 15 percent on January 1, 1989.
Manager
Joined: 15 Aug 2005
Posts: 199
Location: New York
Followers: 1

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

Show Tags

30 Jan 2006, 18:02
E.

We don't know the actual figures of any of the variables.
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 358 [0], given: 0

Show Tags

30 Jan 2006, 20:44
Net = gross - deductions

1) gross income up up by 4%. insufficient as we have no idea how much deductions went up
2) deductions up by 15%. Same reason as above. Insufficient.

Using 1) and 2):

If original gross income = g, deductions = d, then net = g - d

gross up by 4% -> 1.04g
net up by 15 percent -> 1.15d

Net net = 1.04g - 1.15d

Change in income = 1.04g - 1.15d - g + d = 0.04g - 0.15d

% change = (0.04g - 0.15d)/(g-d)

Now with different values of g and d, we will get different % change.

If we're not told what values, we won't know the % change.

Ans E
SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 137 [0], given: 0

Show Tags

30 Jan 2006, 20:57
Phew...

Me too arrived at 'E'. But OA given was C, I was wondersing what trick can be there? It's a simple question but OA made me think that it's "not that simple"
GMAT Club Legend
Joined: 07 Jul 2004
Posts: 5062
Location: Singapore
Followers: 30

Kudos [?]: 358 [0], given: 0

Show Tags

30 Jan 2006, 21:11
vivek123 wrote:
Phew...

Me too arrived at 'E'. But OA given was C, I was wondersing what trick can be there? It's a simple question but OA made me think that it's "not that simple"

While working it, I thought C but I haven't though deeper into it yet... I'll think some more about it... (I have neck strain and it's killing me )

What's the source anyway?
SVP
Joined: 14 Dec 2004
Posts: 1702
Followers: 3

Kudos [?]: 137 [0], given: 0

Show Tags

30 Jan 2006, 22:18
ywilfred wrote:
vivek123 wrote:
Phew...

Me too arrived at 'E'. But OA given was C, I was wondersing what trick can be there? It's a simple question but OA made me think that it's "not that simple"

While working it, I thought C but I haven't though deeper into it yet... I'll think some more about it... (I have neck strain and it's killing me )

What's the source anyway?

Hey Wilfred, looks like you are over working, take rest.
But I really appreciate your hard work. Working & also contributing to GMAT club

BTW, the source is GMAT sets (old ETS papers) but I have seen some OAs are wrong, so can't say that this OA is 100% correct!

Anyways, thanks a lot!
SVP
Joined: 28 Dec 2005
Posts: 1575
Followers: 3

Kudos [?]: 147 [0], given: 2

Show Tags

31 Jan 2006, 09:32
wow, for once i did this exactly as ywilfred did !!!

But then I was disappointed to see that I didnt get the OA, lol .... i cant see what ive done wrong to end up with E though .... same expression that gives different numbers depending on the original income and deductions ..
31 Jan 2006, 09:32
Display posts from previous: Sort by