By what percent did the companys earnings increase this year in terms

Question

By what percent did the company’s earnings increase this year in terms of US dollars?

(1) The company earned 18% more Canadian dollars this year.

(2) The company earned 100,000 Canadian dollars this year.

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GMATinsight · Answer

In the first glance, I looked at the currency  US Dollars  used in the question stem in which the answer is required.

Since the statements are in currency  Canadian Dollar  therefore, even if everything the question is asking can be calculated, we don't have the conversion metric (how the canadian dollar worth has changed over this time with respect to worth of US dollar) hence the answer of the question is
 Together not Sufficient

Answer: Option E

mayankdgmat · Answer

IMO A

Let 1 Canadian dollar = x Us dollar
Let company earned y dollar last year

(1) This year = 1.18y => 1.18xy US dollar
Last year = xy US dollar

% increase = (1.18xy-xy)/xy *100 = 18%

Hence suff

(2) we don't know anything about last year. Hence insuff

poojaarora1818 · Answer

By what percent did the company’s earnings increase this year in terms of US dollars?

(1) The company earned 18% more Canadian dollars this year.

(2) The company earned 100,000 Canadian dollars this year.

Statement 1

18% more Canadian Dollars but we need to know what % increase in terms of US dollars.
Insufficient

Statement 2

Again the company earned 100000 Canadian dollars but we want to figure out % increase in terms of US dollars
Insufficient

Even if combine both statements we won't get any conclusive answer

Option E

satvikd22 · Answer

I feel it should be A since the conversion rate should be the same irrespective and percentage increase should be a constant that gets multiplied both in the numerator and denominator. Yes conversion rate is missing but percentage increase should be the same. Can someone explain why this is not the case.

GMATCoachBen · Answer

@satvikd22 It's very tricky, but I believe the logic here is that the conversion rate for each year could be different. You're right that if the conversion rate were the same, the percent change would be the same. I haven't seen an official problem like this before.

Here's an example:

Last year's earnings = $100 Canadian
This year's earnings = $118 Canadian

Last year: $1 Canadian = $1 US  -->  Last year's earnings = $100 US
This year: $1 Canadian = $.75 US --> This year's earnings = $88.50 US

By what percent did the companys earnings increase this year in terms

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GMAT Data Sufficiency (DS) Questions

By what percent did the companys earnings increase this year in terms

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