GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 16 Oct 2018, 15:56

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.

Close

Request Expert Reply

Confirm Cancel

A professional athlete was offered a three-year contract to play with

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49915
A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 01 Feb 2018, 00:48
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

82% (03:03) correct 18% (02:04) wrong based on 28 sessions

HideShow timer Statistics

A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

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?
Extra-hard Quant Tests with Brilliant Analytics

Intern
Intern
avatar
B
Joined: 27 Aug 2016
Posts: 15
Re: A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 01 Feb 2018, 01:14
I go with Answer. C

Team K
First Year: 100K + 50K
Second Year: 120K
Third Year: 144k

Total: 414K

Team L

First Year: 150K
Second Year: 165K
Third Year: 181.5K

Total: 496.K

Difference: 82.5K

Hence Answer C.
Intern
Intern
avatar
B
Joined: 03 Jun 2015
Posts: 21
WE: Information Technology (Computer Software)
Re: A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 01 Feb 2018, 02:20
Bunuel wrote:
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000



Renumeration offered by :

Team K : 100,000 + 1.2*100,000 +1.2* 1.2*100,000 + 50,000 = 100,000(1+1.2+1.44+0.5)= 100,000*4.14 = 414,000 --------(1)
Team L : 150,000 + 1.1*150,000 + 1.1*1.1*150,000 = 150,000(1+1.1+1.21) = 150,000*3.31= 496500 --------(2)


Answer = (2) - (1) = 496500-414000 = 825000


Answer is C.
_________________

A dream doesn't become reality through magic; it takes sweat, determination and hard work.

Director
Director
User avatar
P
Joined: 09 Mar 2016
Posts: 940
A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post Updated on: 01 Feb 2018, 10:47
Bunuel wrote:
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000



Ok, GMAT quant party starts here :)

A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing

Hello! Yes, you ! please read below and correct my mistake! :)

i am using formula , and exponent meant number of years

x = \(100, 000 (1+0,20)^2\)
x = 100,000*1.44 = 144,000 +bonus 50,000 = 194,000

x = \(150,000 (1+0,1)^2\)
x = 150,000 * 1,21
x= 181,500

194,000 - 181,500 = 12,500

so why this formula doesnt work ? :? :-)

Originally posted by dave13 on 01 Feb 2018, 10:44.
Last edited by dave13 on 01 Feb 2018, 10:47, edited 1 time in total.
Director
Director
User avatar
P
Joined: 09 Mar 2016
Posts: 940
Re: A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 01 Feb 2018, 10:46
dave13 wrote:
Bunuel wrote:
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000




Ok, GMAT quant party starts here :)

Hello! Yes, you ! please read below and correct my mistake! :)

i am using formula , and exponent meant number of years

x = \(100, 000 (1+0,20)^2\)
x = 100,000*1.44 = 144,000 +bonus 50,000 = 194,000

x = \(150,000 (1+0,1)^2\)
x = 150,000 * 1,21
x= 181,500

194,000 - 181,500 = 12,500

so why this formula doesnt work ? :? :-)
Senior SC Moderator
avatar
V
Joined: 22 May 2016
Posts: 2033
Premium Member CAT Tests
A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 01 Feb 2018, 18:04
1
dave13 wrote:
dave13 wrote:
Bunuel wrote:
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000




Ok, GMAT quant party starts here :)

Hello! Yes, you ! please read below and correct my mistake! :)

i am using formula , and exponent meant number of years

x = \(100, 000 (1+0,20)^2\)
x = 100,000*1.44 = 144,000 +bonus 50,000 = 194,000

x = \(150,000 (1+0,1)^2\)
x = 150,000 * 1,21
x= 181,500

194,000 - 181,500 = 12,500

so why this formula doesnt work ? :? :-)

Hi dave13 ,
Well, the formula didn't work because you calculated only his Year 3 salary (correctly, I might add).

You have to add the money he makes in Year 1 and Year 2.

Let's use Team K's deal.

You calculated Year 3 correctly: $144,000

You have to add
Year 1 = 100,000
Year 2 = 120,000 (= 100,000 * 1.2)
Year 3 = 144,000 (=100,00*1.44 OR 120,000*1.2)
Bonus = 50,000
--------------------
TOTAL = $414,000 for Team K's deal

Now do the same for Team L

Year 1:
Year 2: ----->(=150,000 * ____)
Year 3: $181,500 (= 150,000 * 1.21)

You've calculated a final amount FOR YEAR 3 based on accrued "interest" (really, just a percent increase) on initial salary -- but compounding interest, while cumulative, is not "additive" in the sense it needs to be here.

Hope that helps.:-)
_________________

The only thing more dangerous than ignorance is arrogance.
-- Albert Einstein

Target Test Prep Representative
User avatar
P
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 3825
Location: United States (CA)
Re: A professional athlete was offered a three-year contract to play with  [#permalink]

Show Tags

New post 02 Feb 2018, 12:19
Bunuel wrote:
A professional athlete was offered a three-year contract to play with Team K that provided for an annual salary of $100,000 in the first year, an increase in annual salary of 20% over the previous year for the next two years, and a bonus of $50,000 on signing. Team L offered a three-year contract providing for an annual salary of $150,000 in the first year, an increase in annual salary of 10% over the previous year for the next two years, and no signing bonus. If he accepts the offer of Team L and fulfills the three-year contract
terms, the athlete will receive how much more money by choosing Team L over Team if?

(A) $32,500

(B) $50,000

(C) $82,500

(D) $92,000

(E) $100,000


Let’s first determine the contract for Team K.

100,000 + 1.2(100,000) + 1.2 x 1.2(100,000) + 50,000

150,000 + 120,000 + 144,000 = 414,000

Let’s now determine the contract for team L.

150,000 + 1.1(150,000) + 1.1 x 1.1(150,000)

150,000 + 165,000 + 181,500 = 496,500

Thus, the difference is 496,500 - 414,000 = 82,500.

Answer: C
_________________

Scott Woodbury-Stewart
Founder and CEO

GMAT Quant Self-Study Course
500+ lessons 3000+ practice problems 800+ HD solutions

GMAT Club Bot
Re: A professional athlete was offered a three-year contract to play with &nbs [#permalink] 02 Feb 2018, 12:19
Display posts from previous: Sort by

A professional athlete was offered a three-year contract to play with

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron
Copyright

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

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

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®.