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

It is currently 21 Oct 2014, 02:58

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

What is Sarah's annual income?

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 12 Feb 2006
Posts: 29
Followers: 0

Kudos [?]: 4 [0], given: 0

What is Sarah's annual income? [#permalink] New post 20 Apr 2006, 18:02
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

63% (02:09) correct 37% (01:07) wrong based on 114 sessions
What is Sarah's annual income?

(1) The ratio of Sarah's and Mary's annual income is 4:3.

(2) The ratio of Sarah's and Mary's savings is 3:2, and combined they spend $20,000, annually.

M01-31
[Reveal] Spoiler: OA
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jul 2004
Posts: 5095
Location: Singapore
Followers: 19

Kudos [?]: 153 [0], given: 0

 [#permalink] New post 20 Apr 2006, 18:42
1) Si/Mi = 4/3
Insufficient as Mi can be any value.

2) Se/Me = 3/2
Ss + Ms = 20,000

We do not know the breakdown of how they use their pay, we can't compute the annual income.
Insufficient.

Using 1) and 2),

Si = 4/3(Mi)
Si = Se + Ss

4/3(Mi) = 3/2(Se) + 20,000 - Ms
4/3(Me + Ms) = 3/2(Se) + 20,000 - Ms
-1/6(Me) + 7/3(Ms) = 20,000
1/6(14Ms - Me) = 20,000
14Ms - Me = 120,000

If Ms = 10,000, then Me = 20,000 Mt = 30,000
If Ms can be 15,000 then Me = 90,000 Mt = 90,000
etc.
Ms can be of any value as long as it's below 20,000 since Ms + Ss = 20,000.

Insufficient as St can now vary.

Ans E
VP
VP
User avatar
Joined: 29 Apr 2003
Posts: 1408
Followers: 2

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

 [#permalink] New post 20 Apr 2006, 21:44
I agree with E... Whats the OA?

Its says 'tricky' and that tricked me to look closely, unfortunately didnt find anything exciting! :(
Manager
Manager
avatar
Joined: 18 Jan 2007
Posts: 97
Followers: 1

Kudos [?]: 3 [0], given: 0

DS: Challenge Problem [#permalink] New post 11 Sep 2007, 18:01
I disagree with answer.

What is Sarah's annual income?
(1) Sarah and Mary earn an annual income in the ratio of 4:3
(2) Sarah and Mary spend money in the in the ratio of 3:2 and together save $20,000 annually


I think answer is C. Challenges say E. Agree with me?
Director
Director
User avatar
Joined: 08 Jun 2007
Posts: 583
Followers: 2

Kudos [?]: 72 [0], given: 0

Re: DS: Challenge Problem [#permalink] New post 11 Sep 2007, 18:16
dr908 wrote:
I disagree with answer.

What is Sarah's annual income?
(1) Sarah and Mary earn an annual income in the ratio of 4:3
(2) Sarah and Mary spend money in the in the ratio of 3:2 and together save $20,000 annually


I think answer is C. Challenges say E. Agree with me?


Clear E . I dont think these 2 stmnts are related to each other to solve the problem.
Director
Director
User avatar
Joined: 14 Jan 2007
Posts: 782
Followers: 2

Kudos [?]: 56 [0], given: 0

Re: DS: Challenge Problem [#permalink] New post 11 Sep 2007, 18:22
dr908 wrote:
I disagree with answer.

What is Sarah's annual income?
(1) Sarah and Mary earn an annual income in the ratio of 4:3
(2) Sarah and Mary spend money in the in the ratio of 3:2 and together save $20,000 annually


I think answer is C. Challenges say E. Agree with me?


Challenges are correct.
Answer should be 'E', as you can not get the Sarah's income with the given info.
Manager
Manager
avatar
Joined: 18 Jan 2007
Posts: 97
Followers: 1

Kudos [?]: 3 [0], given: 0

yup [#permalink] New post 11 Sep 2007, 18:23
i see why now. because though i can find values that would add up to the 200 k, there are many different answers for mary's income. i could just vary the money they spent.
Manager
Manager
avatar
Joined: 17 Aug 2007
Posts: 78
Followers: 1

Kudos [?]: 3 [0], given: 0

Re: DS: Challenge Problem [#permalink] New post 11 Sep 2007, 20:30
dr908 wrote:
I disagree with answer.

What is Sarah's annual income?
(1) Sarah and Mary earn an annual income in the ratio of 4:3
(2) Sarah and Mary spend money in the in the ratio of 3:2 and together save $20,000 annually


I think answer is C. Challenges say E. Agree with me?


what you may have missed here is .. they together save 20,000 annually. Had they each saved 20,000 annually we could have got C.
Intern
Intern
avatar
Joined: 09 Sep 2007
Posts: 5
Followers: 0

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

 [#permalink] New post 11 Sep 2007, 21:15
Saras income = S
Mary's income = M
Let the money spent by Mary = x

First statement says:
S/M = 4/3

From second statement;
(S - 1.5x) + (M-x) = 20K

Two equations and 3 unknowns (S,M,x) so not solveable. E is the correct answer.
GMAT Club Legend
GMAT Club Legend
User avatar
Joined: 07 Jul 2004
Posts: 5095
Location: Singapore
Followers: 19

Kudos [?]: 153 [0], given: 0

 [#permalink] New post 11 Sep 2007, 22:04
St1:
Insufficient. We don't have any concrete figures.

St2:
Insufficient. We don't know anything about their income and how much they spend.

Using st1 and st2:
We can't work out anything. We don't know the amount spent and the amount earnt.

Ans E
SVP
SVP
User avatar
Joined: 06 Sep 2013
Posts: 1728
Location: United States
Concentration: Finance
GMAT 1: 710 Q48 V39
WE: Corporate Finance (Investment Banking)
Followers: 14

Kudos [?]: 189 [0], given: 293

GMAT ToolKit User
Re: What is Sarah's annual income? [#permalink] New post 22 Apr 2014, 05:35
Please correct the question, it should say 'save' not 'spend' on the second statement otherwise the answer would be C not E

Thanks!
Cheers
J :)
Expert Post
Math Expert
User avatar
Joined: 02 Sep 2009
Posts: 23351
Followers: 3602

Kudos [?]: 28695 [0], given: 2809

Re: What is Sarah's annual income? [#permalink] New post 22 Apr 2014, 09:20
Expert's post
jlgdr wrote:
Please correct the question, it should say 'save' not 'spend' on the second statement otherwise the answer would be C not E

Thanks!
Cheers
J :)


The question is correct.

What is Sarah's annual income?

(1) The ratio of Sarah's and Mary's annual income is 4:3.

(2) The ratio of Sarah's and Mary's savings is 3:2, and combined they spend $20,000, annually.

Let s and m denote Sarah's and Mary's spending and S and M denote their incomes, then combining the two statements gives:

\frac{S}{M}=\frac{4}{3};

\frac{S-s}{M-m}=\frac{3}{2};

s+m=20000.

We cannot solve the system of equations.

Answer: E.
_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
25 extra-hard Quant Tests

Get the best GMAT Prep Resources with GMAT Club Premium Membership

Intern
Intern
avatar
Joined: 08 Jan 2014
Posts: 20
Location: United States
Concentration: General Management, Entrepreneurship
GMAT Date: 06-30-2014
GPA: 3.99
WE: Analyst (Consulting)
Followers: 1

Kudos [?]: 14 [0], given: 4

Re: What is Sarah's annual income? [#permalink] New post 10 May 2014, 10:01
Let S = Sarah's annual income
Let M = Mary's annual income
Let x = the amount Sarah spends each year
Let y = the amount Mary spends each year

Rephrased target question: What is the value of S?

Statement 1: Sarah and Mary earn an annual income in the ratio of 4:3
In other words: S/M = 4:3
Cross multiply to get 3S = 4M
Simplify: 3S - 4M = 0
We can't find the value of S, so statement 1 is NOT SUFFICIENT

Statement 2: Sarah and Mary spend money in the ratio of 3:2 and together save $20,000, annually.

Sarah and Mary spend money in the ratio of 3:2
We get x/y = 3/2
Simplify to get: 2x - 3y = 0

Together they save $20,000 annually
Sarah's savings + Mary's savings = 20,000
(S - x) + (M - y) = 20,000

We can't find the value of S, so statement w is NOT SUFFICIENT

Statements 1 and 2 combined:
We now know that:
3S - 4M = 0
2x - 3y = 0
(S - x) + (M - y) = 20,000

Since we have 3 equations and 4 unknowns, we cannot solve this system for S.
So, the combined statements are NOT SUFFICIENT

Hence Answer = E
Re: What is Sarah's annual income?   [#permalink] 10 May 2014, 10:01
    Similar topics Author Replies Last post
Similar
Topics:
4 Experts publish their posts in the topic Mary’s annual income is $15,000 and John’s annual income is megafan 6 04 Mar 2013, 06:50
3 Rebecca's annual income is $15,000 and Jimmy's annual income Pansi 6 11 Nov 2012, 01:38
The percentage of households with an annual income of more Swagatalakshmi 0 26 Nov 2006, 17:12
PS- Annual Income lan583 3 28 Aug 2006, 12:56
The percentage of households with an annual income of more cybera 0 14 Jul 2005, 15:10
Display posts from previous: Sort by

What is Sarah's annual income?

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

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®.