Find all School-related info fast with the new School-Specific MBA Forum

It is currently 17 Sep 2014, 03:50

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

This year Henry will save a certain amount of his income,

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Manager
Manager
avatar
Joined: 08 Oct 2005
Posts: 101
Followers: 1

Kudos [?]: 1 [0], given: 0

This year Henry will save a certain amount of his income, [#permalink] New post 05 Aug 2006, 07:19
This year Henry will save a certain amount of his income, and he will spend the rest. Next year Henry will have no income, but for each dollar that he saves this year, he will have 1 + r dollars available to spend. In terms of r, what fraction of his income should Henry save this year so that next year the amount he was available to spend will be equal to half the amount that he spends this year?

A. 1 / r+2

B. 1/ 2r+2

C. 1 / 3r+2

D. r / r+3

E. 1 / 2r+3
Senior Manager
Senior Manager
avatar
Joined: 22 May 2006
Posts: 375
Location: Rancho Palos Verdes
Followers: 1

Kudos [?]: 16 [0], given: 0

GMAT Tests User
Re: Henry [#permalink] New post 05 Aug 2006, 10:27
Let saving amount = S and Income = I
S/I = ?

Spending = I - S
Available fund to spend = S*(1+r)
Spending/2 = S*(1+r)
(I-S)/2 = S*(1+r)
I-S = 2S(1+r)
I = S[2+2r+1]
S/I = 1 / 2r+3

Hence, E.
_________________

The only thing that matters is what you believe.

Manager
Manager
avatar
Joined: 20 Mar 2006
Posts: 201
Followers: 1

Kudos [?]: 1 [0], given: 0

GMAT Tests User
Re: Henry [#permalink] New post 05 Aug 2006, 10:50
---------------This year--------------Next Year
Income------100(assume)---------- 0(given)
Save--------- x$(assume)----------No info
spend--------100-x --------------- x(1+r) given

Also given in Q.stem --> x(1+r) = (100-x)/2
i.e x+xr = 50 - x/2
i.e x+x/2+xr = 50
3x/2+xr = 50
x(r+3/2) = 50
x= 50/(r+3/2)
x = 100/(2r+3)
Therfore he has to save 1/(2r+3) of income this year

Hence E
Manager
Manager
avatar
Joined: 08 Oct 2005
Posts: 101
Followers: 1

Kudos [?]: 1 [0], given: 0

Re: Henry [#permalink] New post 05 Aug 2006, 20:04
freetheking wrote:
Let saving amount = S and Income = I
S/I = ?

Spending = I - S
Available fund to spend = S*(1+r)
Spending/2 = S*(1+r)
(I-S)/2 = S*(1+r)
I-S = 2S(1+r)
I = S[2+2r+1]
S/I = 1 / 2r+3

Hence, E.

OA is E good job buddy
Re: Henry   [#permalink] 05 Aug 2006, 20:04
    Similar topics Author Replies Last post
Similar
Topics:
This year Henry will save a certain amount of his income, Nihit 2 20 Sep 2008, 07:50
This year Henry will save a certain amount of his income, Himalayan 2 14 Jul 2007, 23:58
This year Henry will save a certain amount of his income, TOUGH GUY 2 28 Jan 2007, 07:42
This year Henry will save a certain amount of his income, M8 6 29 Apr 2006, 21:03
This year Henry will save a certain amount of his income, sperumba 8 16 Jan 2006, 10:32
Display posts from previous: Sort by

This year Henry will save a certain amount of his income,

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.