It is currently 23 Feb 2018, 04:30

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Alice’s take-home pay last year was the same each month, and

Author Message
TAGS:

### Hide Tags

Intern
Joined: 31 Dec 2017
Posts: 18
Concentration: Finance
Re: Alice’s take-home pay last year was the same each month, and [#permalink]

### Show Tags

09 Feb 2018, 17:07
changhiskhan wrote:
Alice’s take-home pay last year was the same each month, and she saved the same fraction of her take-home pay each month. The total amount of money that she had saved at the end of the year was 3 times the amount of that portion of her monthly take-home pay that she did NOT save. If all the money that she saved last year was from her take-home pay, what fraction of her take-home pay did she save each month?

A. 1/2
B. 1/3
C. 1/4
D. 1/5
E. 1/6

pay per month = $$x$$
pay last year = $$12x$$

savings per month = $$\frac{1}{y}(x) = \frac{x}{y}$$
savings last year = $$\frac{12x}{y}$$

spending each month = $$x - \frac{x}{y} = \frac{(xy-x)}{y}$$
spending last year = $$\frac{12(xy-x)}{y}$$

$$\frac{12x}{y} = \frac{3[xy-x]}{y}$$
$$\frac{4x}{y} = \frac{xy-x}{y}$$
$$4x = xy-x$$
$$5x = xy$$
$$y = 5$$.

Fraction = $$\frac{1}{5}$$.
Intern
Joined: 16 Oct 2017
Posts: 25
Re: Alice’s take-home pay last year was the same each month, and [#permalink]

### Show Tags

14 Feb 2018, 18:08
EMPOWERgmatRichC wrote:
Hi All,

We can solve this question with some algebra, but you have to be detailed with how you assign variables.

If...
X = the amount of money Alice EARNED per month
Y = the amount of money Alice SAVED per month
Y/X = the FRACTION of her paycheck she saved per month
then...
12Y = the amount of money Alice saved in ONE YEAR

Since the TOTAL amount saved = 3 times (what she DIDN'T save), we have this...
12Y = 3(X - Y)

Now, we can simplify:
12Y = 3X - 3Y
15Y = 3X
5Y = X
Y/X = 1/5

[Reveal] Spoiler:
D

GMAT assassins aren't born, they're made,
Rich

Hi Rich,

Can this be solved using smart numbers? For example, by using $120 for take-home pay to represent 12 months? EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 11063 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: 340 Q170 V170 Re: Alice’s take-home pay last year was the same each month, and [#permalink] ### Show Tags 14 Feb 2018, 20:09 Hi OCDianaOC, Yes, you could solve this question by TESTing VALUES. To use that approach efficiently though, you wouldn't start with Alice's take-home pay each month - you'd actually have to start with the information in the second sentence: "The total amount of money that she had saved at the end of the year was 3 times the amount of that portion of her monthly take-home pay that she did NOT save." By TESTing VALUES that fit this information, you can then 'work backwards' and determine her take-home pay each month (and then answer the question). GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/

***********************Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!***********************

Intern
Joined: 16 Oct 2017
Posts: 25
Re: Alice’s take-home pay last year was the same each month, and [#permalink]

### Show Tags

14 Feb 2018, 22:19
EMPOWERgmatRichC wrote:
Hi OCDianaOC,

Yes, you could solve this question by TESTing VALUES. To use that approach efficiently though, you wouldn't start with Alice's take-home pay each month - you'd actually have to start with the information in the second sentence:

"The total amount of money that she had saved at the end of the year was 3 times the amount of that portion of her monthly take-home pay that she did NOT save."

By TESTing VALUES that fit this information, you can then 'work backwards' and determine her take-home pay each month (and then answer the question).

GMAT assassins aren't born, they're made,
Rich

Thanks Rich, but I'm not getting the correct answer by testing values.

I chose that she saved $10/month and had$120 by the end of the year. She did NOT save $40 (since$120 is 3 times bigger than $40). Total take-home pay is$1,200/year.

Help!
EMPOWERgmat Instructor
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 11063
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: 340 Q170 V170
Re: Alice’s take-home pay last year was the same each month, and [#permalink]

### Show Tags

15 Feb 2018, 11:24
1
KUDOS
Expert's post
Hi OCDianaOC,

The numbers you've chosen to TEST are perfect, but you made a small math mistake:

IF... $10 was saved each month and$40 was NOT saved each month, then the total for each month is $50 (not$100). Thus, the take-home pay for the year would be (12)($50) =$600.

Total saved for the year = (12)($10) =$120
Total take-home pay for the year = $600$120/$600 = 1/5 GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee
www.empowergmat.com/

***********************Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!***********************

Re: Alice’s take-home pay last year was the same each month, and   [#permalink] 15 Feb 2018, 11:24

Go to page   Previous    1   2   [ 25 posts ]

Display posts from previous: Sort by