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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
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gmatt1476 wrote:
A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?

(1) The publicist's yearly fee is $2,000.
(2) The novelist earned an average of $3,500 in royalties last year on each of her novels.

DS53541.01


Let R be her royalties and let x be the yearly fee of her publicist. The original question:
Is 0.15R > 0.05R + x
0.1R > x
R > 10x ?

1) We know that x=2000 and can use this statement information to further rephrase the original question.
Is R > 20000 ?
Clearly, we can't get a definite answer to the further rephrased question. \(\implies\) Insufficient

2) Let n be the number of her novels. We know that R=3500n and can use this statement information to further rephrase the original question.
Is 3500n > 10x ?
Clearly, we can't get a definite answer to the further rephrased question. \(\implies\) Insufficient

1&2) Using all statement information, we can further rephrase the original question.
Is 3500n > 20000 ?
Clearly, we can't get a definite answer to the further rephrased question. \(\implies\) Insufficient

Answer: E
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
gmatt1476 wrote:
A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?

(1) The publicist's yearly fee is $2,000.
(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.


DS53541.01


there are 2 equations.

total is x, then agent gets = 15/100 of x
and publicist gets 5/100 of x + y (yearly fees)

stmnt 1 = doesnt say anything about y
stmnt 2: doesnt say anything about y

combined, we dont get anything about y. hence answer'E'
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?

(1) The publicist's yearly fee is $2,000.

We're given percentages in the question; we don't know if $2,000 > 10%. INSUFFICIENT.

(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.

Clearly insufficient.

(1&2) Knowing the average of royalties for each of her novels AND hear yearly fee is not enough information to conclude who she paid more. INSUFFICIENT.

Answer is E.
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
gmatt1476 wrote:
A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?

(1) The publicist's yearly fee is $2,000.
(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.

DS53541.01

1. Let royalties be presented as \(R\) and yearly fee of the publicist be presented as \(F\)
2. The agent is paid \(0.15R\) and publicist is paid \(0.05R + F\)
3. If the agent is paid more than the publicist the \(0.15R > 0.05R + F\) --> \(0.10R > F\) --> \(R > 10F\)
4. We need the value of \(R\) and \(F\) to answer the question

Statement - I (Insufficient)
Gives us the value of \(F\) but not the value of \(R\)

Statement - II (Insufficient)
1. This information does not tell us the number of novels sold hence we cannot find the value of \(R\)
2. Also, does not give us the value of \(F\)

Statement - I & II Combined (Insufficient)
1. We get the value of \(F\)
2. But, does not tell us the number of novels sold hence we cannot find the value of \(R\)

Ans. E
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
It's all about the number of novels here! Very easy to fall into the trap of C here, if the number of novels as a factor is ignored.
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
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Re: A novelist pays her agent 15% of the royalties she receives from her [#permalink]
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