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26 Jun 2018, 06:19
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A
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
35%
(medium)
Question Stats:
64% (01:08) correct
36%
(01:11)
wrong
based on 617
sessions
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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.
(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.
Bunuel
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.
(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.
As the profit increases every year by a fixed amount, the profit can be analysed through AP series.
Let \(p\) be the profit in 1985. Time period \(n=1991-1985=16\) years. Let \(d\) be the common difference.
Hence Profit in 1991 \(= p + (n-1)d = p + (16-1)d\)
we need the value of \(p\) & \(d\)
Statement 1: implies \(p=212,000\)
Profit in 1989 i.e \(4\) years since 1985 will be \(=212000 + (4-1)d=242000\).
From this statement, we get the value of \(p & d\).
This statement gives all the required values. Sufficient
Statement 2: we know the increase in profit but we do not know the profit amount. hence \(p\) & \(d\) cannot be calculated. Insufficient
Option A
27 Jun 2018, 04:28
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Bunuel
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.
(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.
Question stem: Company R's annual profit has increased by a constant amount each calendar year since 1985
It means that the profit in each subsequent year since 1985 is in an AP.
Statement 1:In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000
We can compute the common difference of the progression and add two more such common differences to compute the value for 1991.
We will get a unique answer.
That will suffice. We need not compute the value as it is a DS question.
However, this is the value. The annual increase in profit = (profit in 1989 - profit in 1985)/4 = (242,000 - 212,000)/4 = 7500.
So, profit in 1991 = Profit in 1989 + 2 * common difference = 242,000 + 2*7500 = $257,000
Statement 1 is sufficient.
Statement 2: Company R's annual profit has increased by $7,500 each year since 1985
We do not know the profit in 1985 or any of the years between 1985 and 1991 to find the answer.
Statement 2 is NOT sufficient.
Choice A.
