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# Company R's annual profit has increased by a constant amount each

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SVP
Joined: 16 Oct 2003
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Company R's annual profit has increased by a constant amount each [#permalink]

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02 Jul 2004, 22:26
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Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991 ?

(1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was$242,000.
(2) Company R's annual profit has increased by $7,500 each year since 1985. [Reveal] Spoiler: OA Last edited by Bunuel on 19 May 2015, 05:57, edited 1 time in total. Renamed the topic, edited the question and added the OA. Senior Manager Joined: 21 Mar 2004 Posts: 445 Location: Cary,NC Re: Company R's annual profit has increased by a constant amount each [#permalink] ### Show Tags 03 Jul 2004, 00:12 A. one can calculate the rate of profit increase per year. rate = (profit2-profit1)/no of years calculate profit increase. = rate*no of years Add the profit increase to the base profit to get the new profit. So A is sufficient. B does not give base profit. Only rate is given. So insufficient. Ans is A. _________________ ash ________________________ I'm crossing the bridge......... GMAT Club Legend Joined: 15 Dec 2003 Posts: 4288 Re: Company R's annual profit has increased by a constant amount each [#permalink] ### Show Tags 03 Jul 2004, 01:05 agree with A. This is a problem where after reading 1), you transpose it to 2) and think that you have the base amount. _________________ Best Regards, Paul Senior Manager Joined: 05 Feb 2004 Posts: 290 Location: USA Re: Company R's annual profit has increased by a constant amount each [#permalink] ### Show Tags 03 Jul 2004, 07:38 U R right Paul, I fell for the trap Manager Joined: 10 Jun 2004 Posts: 83 Re: Company R's annual profit has increased by a constant amount each [#permalink] ### Show Tags 03 Jul 2004, 08:27 Bhai wrote: 15. Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991 ? (1) In 1985 Company R's annual profit was$212,000; in 1989 Company R's annual profit was $242,000. (2) Company R's annual profit has increased by$7,500 each year since 1985.

I will go with D

(1) We can know what is the increased amount for for years, and as the profit inceases constantly. we can get the increase rate per year. sufficient

(2) obvisoully, states the increase amount per year.sufficient
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Manager
Joined: 10 Jun 2004
Posts: 83
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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03 Jul 2004, 08:29
cbrf3 wrote:
U R right Paul, I fell for the trap

Ooops I fell also in the same trap. you are right Paul
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Intern
Joined: 22 Dec 2009
Posts: 22
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Aug 2010, 09:30
Please explain the logic behind the ans A? I would assume the question states constant profit - statement 2 states has increased by 7,500 since 1985...
Senior Manager
Joined: 25 Feb 2010
Posts: 461
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Aug 2010, 14:28
cmugeria wrote:
Please explain the logic behind the ans A? I would assume the question states constant profit - statement 2 states has increased by 7,500 since 1985...

Statement 1: In 1985, profit was \$212,000 and 1989 profit was 242,000. So each year profit was (242,000-212000)/4 = 7500. So it is sufficient to find the profit in 1991 by adding 15000 to 242,000.
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Intern
Joined: 22 Dec 2009
Posts: 22
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Aug 2010, 18:07
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?
Intern
Joined: 16 Aug 2010
Posts: 7
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Aug 2010, 21:17
cmugeria wrote:
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?

Answer this: By knowing only the profit amount, how are you going to calculate the annual profit? Get it?
Manager
Joined: 18 Oct 2008
Posts: 191
Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Aug 2010, 21:43
cmugeria wrote:
i understand A is the answer however B can be an answer as the if the amount increasing is constant and we are told its 7500 then isn't this sufficient making the answer D?

Clear A.

You cant carry information from Statement 1.
Stmt 2 just gives us the rate, but what is the initial base?
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Re: Company R's annual profit has increased by a constant amount each [#permalink]

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18 May 2015, 21:56
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: Company R's annual profit has increased by a constant amount each [#permalink]

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17 Jun 2016, 18:50
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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Re: Company R's annual profit has increased by a constant amount each   [#permalink] 17 Jun 2016, 18:50
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