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

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Intern
Joined: 10 Oct 2008
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This year Henry will save a certain amount of his income, [#permalink]  10 Oct 2008, 07:50
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. 1(r+3)
E. 1(2r+3)
Manager
Joined: 14 Oct 2008
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Re: Henry [#permalink]  14 Oct 2008, 06:41
E according to me.

Let the amount he saves be x so that amount spent in previous year is 1-x
Next year the saving will be x(1+r) and as the statement says,
x(1+r) = (1-x) / 2
2x + 2xr = 1 - x
3x + 2xr = 1
x(2r + 3) = 1
x = 1 / ( 2r + 3)
Senior Manager
Joined: 21 Apr 2008
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Location: Motortown
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Re: Henry [#permalink]  14 Oct 2008, 18:30
E

Will go with the explanation by gameCode
Re: Henry   [#permalink] 14 Oct 2008, 18:30
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