GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 31 May 2020, 02:50

### 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

# At a certain company, employees who earn \$20.00 per hour will be given

Author Message
TAGS:

### Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 64249
At a certain company, employees who earn \$20.00 per hour will be given  [#permalink]

### Show Tags

10 Dec 2019, 01:07
00:00

Difficulty:

45% (medium)

Question Stats:

70% (02:35) correct 30% (02:26) wrong based on 44 sessions

### HideShow timer Statistics

At a certain company, employees who earn \$20.00 per hour will be given an increase of \$1.00 per hour. For each of the other employees, either the employee will be given an increase of \$1.00 per hour or the employee will be given a percent increase equal to the percent increase that will be given to the employees who earn \$20.00 per hour, whichever results in a larger increase for that employee. Which of the following statements are true?

I. An employee who earns less than \$20.00 per hour will be given a percent increase that is greater than the percent increase that will be given to the employees who earn \$20.00 per hour.
II. An employee who earns \$22.00 per hour will be given an increase of \$1.10 per hour.
III. An employee who earns \$24.00 per hour will earn \$25.20 per hour after the increase.

A. I only
B. II only
C. III only
D. I and II only
E. I, II, and III

Are You Up For the Challenge: 700 Level Questions

_________________
Math Expert
Joined: 02 Aug 2009
Posts: 8615
Re: At a certain company, employees who earn \$20.00 per hour will be given  [#permalink]

### Show Tags

10 Dec 2019, 02:59
Bunuel wrote:
At a certain company, employees who earn \$20.00 per hour will be given an increase of \$1.00 per hour. For each of the other employees, either the employee will be given an increase of \$1.00 per hour or the employee will be given a percent increase equal to the percent increase that will be given to the employees who earn \$20.00 per hour, whichever results in a larger increase for that employee. Which of the following statements are true?

I. An employee who earns less than \$20.00 per hour will be given a percent increase that is greater than the percent increase that will be given to the employees who earn \$20.00 per hour.
II. An employee who earns \$22.00 per hour will be given an increase of \$1.10 per hour.
III. An employee who earns \$24.00 per hour will earn \$25.20 per hour after the increase.

A. I only
B. II only
C. III only
D. I and II only
E. I, II, and III

Are You Up For the Challenge: 700 Level Questions

This tells us three things
(a) that <20.00\$ will lead to an increase of \$1.00
(b) that >\$20.00 will lead to a percent increase equal to 100*1/20 or 5%
(c) that =20.00\$ will lead to an increase of \$1.00

Now we are looking at MUST be true question

I. An employee who earns less than \$20.00 per hour will be given a percent increase that is greater than the percent increase that will be given to the employees who earn \$20.00 per hour.
1 will be a greater percentage of <20.00 that for 20.00.
On an amount of 20, 1 gives 5%, but for an amount 10, it will be 100*1/10=10%, so on amounts less than 20, it will always be >5%.
True

II. An employee who earns \$22.00 per hour will be given an increase of \$1.10 per hour.
The employee will get a 5% increase, so increase =22*5/100=1.1\$
True

III. An employee who earns \$24.00 per hour will earn \$25.20 per hour after the increase.
The employee will get a 5% increase, so amount=24+24*5/100=24+1.2\$=25.20\$
True

All three true

E
_________________
CrackVerbal Quant Expert
Joined: 12 Apr 2019
Posts: 590
Re: At a certain company, employees who earn \$20.00 per hour will be given  [#permalink]

### Show Tags

16 Dec 2019, 23:18
1
The hidden clue in this question is the percentage increase in salary given to the persons earning \$20/hr. If you are someone who earns \$20/hr and you receive a \$1/hr raise, you received a 5% increase, right?

You will now see that interpreting the second statement of the question becomes very simple. But before that, let’s break up the persons into three categories:

Category 1 – People who earn \$20/hr. These people receive a \$1/hr (or a 5% raise).

Category 2 – People who earn <\$20/hr. 5% of a number less than 20 is less than \$1. Therefore, these people receive a \$1/hr increase which represents more than 5% of their salary.

Category 3 – People who earn >\$20/hr. 5% of a number more than 20 is more than \$1. Therefore, these people receive an amount equal to 5% of their salary since this will be more than \$1.

Now that this is clear, let’s evaluate the statements one by one.

Statement I says that people in category 2 earn a higher percentage increase than people in category 1. From the above discussion, we know that this is true. Statement I has to be a part of the answer, so answer options B and C can be eliminated.

Statement II and III talk about two individuals who are in category 3. It’s clear that these individuals will receive a 5% increase on their respective salaries.
5% of 22 is 1.10 and 5% of 24 is 1.20. Clearly, statement II is true. When 1.20 is added to 24, the result is 25.20. Statement III is also true. Answer options A and D can be eliminated.

The correct answer option is E.

Hope that helps!
_________________
Intern
Joined: 14 Jul 2019
Posts: 34
Re: At a certain company, employees who earn \$20.00 per hour will be given  [#permalink]

### Show Tags

03 Mar 2020, 08:02
Bunuel wrote:
At a certain company, employees who earn \$20.00 per hour will be given an increase of \$1.00 per hour. For each of the other employees, either the employee will be given an increase of \$1.00 per hour or the employee will be given a percent increase equal to the percent increase that will be given to the employees who earn \$20.00 per hour, whichever results in a larger increase for that employee. Which of the following statements are true?

I. An employee who earns less than \$20.00 per hour will be given a percent increase that is greater than the percent increase that will be given to the employees who earn \$20.00 per hour.
II. An employee who earns \$22.00 per hour will be given an increase of \$1.10 per hour.
III. An employee who earns \$24.00 per hour will earn \$25.20 per hour after the increase.

A. I only
B. II only
C. III only
D. I and II only
E. I, II, and III

So, the \$20 people will have a raise of h*1 dollars (h is the number of hours they worked)
% increase for the \$20: h/20%

I. People who earns less than 20 (say, x<20) will either choose to have a raise of h/20% or get \$1/hour. If they take the dollar amount, their percent increase will be h/s% > h/20% (since x<20). TRUE. And furthermore, it's better for them to take the \$1/hr raise.
II. Similarly, people who earn more than 20/hr will be better off taking the % increase. Their hourly raise will be h/20%*22 = 1.1h dollars. So they have \$1.1 raise per hour in wage. TRUE.
III. Same as (II).

IMO E
Manager
Joined: 30 Jun 2019
Posts: 209
Re: At a certain company, employees who earn \$20.00 per hour will be given  [#permalink]

### Show Tags

03 Mar 2020, 11:36
\$20 to \$21 is a 2% increase
22/2 = 11 -> \$1.10 > \$1 so they will get a \$1.10 increase
24/2 = 12 -> \$1.20 > \$1 so they will get a \$1.20 increase

all three true
Re: At a certain company, employees who earn \$20.00 per hour will be given   [#permalink] 03 Mar 2020, 11:36