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Subtle Language in Percent Problem - Help!

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Subtle Language in Percent Problem - Help! [#permalink] New post 02 Jul 2013, 20:35
(1) Company K's earnings were $12 million last year. If this year's earnings were projected to be 150 percent greater than last year's earnings, what are company K's projected earnings this year?

(2) Last year, Carlos saved 10% of this annual earnings. This year he earned 5 percent more than last year and he saved 12 percent of his annual earnings. This amount saved this year was what percent of the amount saved last year?

Both are OG questions. I am having trouble understanding the difference between the highlighted portions. It is simple but can someone please explain. I am not understanding why the approach to the first question is 1 + 1.5($12 million) while the second one is just 0.05(earnings last year).

Thank you.
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Re: Subtle Language in Percent Problem - Help! [#permalink] New post 02 Jul 2013, 21:55
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izzyb wrote:
(1) Company K's earnings were $12 million last year. If this year's earnings were projected to be 150 percent greater than last year's earnings, what are company K's projected earnings this year?

(2) Last year, Carlos saved 10% of this annual earnings. This year he earned 5 percent more than last year and he saved 12 percent of his annual earnings. This amount saved this year was what percent of the amount saved last year?

Both are OG questions. I am having trouble understanding the difference between the highlighted portions. It is simple but can someone please explain. I am not understanding why the approach to the first question is 1 + 1.5($12 million) while the second one is just 0.05(earnings last year).

Thank you.


QUESTION #1:
Last year Carlos saved 10 percent of his annual earnings. This year he earned 5 percent more than last year and he saved 12 percent of his annual earnings. The amount saved this year was what percent of the amount saved last year?
(A) 122%
(B) 124%
(C) 126%
(D) 128%
(E) 130%

LAST YEAR
Earnings = 100 (assume).
Amount saved = 0.1*100 =10.

THIS YEAR
Earnings = 100*1.05 = 105.
Amount saved = 0.12*105 =12.6.

The amount saved this year as a percent of the amount saved last year is (this yea)/(last year)*100 = 12.6/10*100 =126%.

Answer: C.

QUESTION #2
Company K's earnings were $12 million last year. If this year's earning are projected to be 150 percent greater than last year's earnings, what are Company K's projected earnings this year?
(A) 13.5 million
(B) 15 million
(C) 18 million
(D) 27 million
(E) 30 million

150 percent greater is (1+150/100)=2.5 times greater. The same way as 10% greater is (1+10/100)=1.1 times greater or the same way as 100% greater is (1+100/100)=2 times greater or the same way as 5% greater is (1+5/100)=1.05 times greater.

Earnings this year = 12*2.5 = 30.

Answer: E.

Theory on Percent and Interest Problems: math-number-theory-percents-91708.html

All DS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=33
All PS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=54

Hope it's clear.

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Re: Subtle Language in Percent Problem - Help!   [#permalink] 02 Jul 2013, 21:55
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