GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 17 Nov 2018, 09:50

# Join here

### 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 November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### FREE Quant Workshop by e-GMAT!

November 18, 2018

November 18, 2018

07:00 AM PST

09:00 AM PST

Get personalized insights on how to achieve your Target Quant Score. November 18th, 7 AM PST
• ### How to QUICKLY Solve GMAT Questions - GMAT Club Chat

November 20, 2018

November 20, 2018

09:00 AM PST

10:00 AM PST

The reward for signing up with the registration form and attending the chat is: 6 free examPAL quizzes to practice your new skills after the chat.

### Show Tags

06 Jul 2013, 08:15
1
7
00:00

Difficulty:

85% (hard)

Question Stats:

50% (02:40) correct 50% (02:35) wrong based on 149 sessions

### HideShow timer Statistics

Jim earns $I this year and will not earn anything next year. If he deposits some of his income at First Ranch Savings Bank, he will earn an interest of b per year per dollar deposited. What fraction of his income should Jim deposit, in terms of b, to ensure he spends the same amount next year as he spends this year? (Assume that Jim spends all money that he does not deposit) (A)1/ b+1 (B)1/2b+1 (C)1/3b+2 (D)1/b+2 (E)1/2b+3 Math Expert Joined: 02 Sep 2009 Posts: 50623 Re: Jim earns$I this year and will not earn anything next year  [#permalink]

### Show Tags

06 Jul 2013, 08:22
guerrero25 wrote:
Jim earns $I this year and will not earn anything next year. If he deposits some of his income at First Ranch Savings Bank, he will earn an interest of b per year per dollar deposited. What fraction of his income should Jim deposit, in terms of b, to ensure he spends the same amount next year as he spends this year? (Assume that Jim spends all money that he does not deposit) (A)1/ b+1 (B)1/2b+1 (C)1/3b+2 (D)1/b+2 (E)1/2b+3 "Stolen" OG question: Quote: This year Henry will save a certain amount of his income, and he will spend the rest. Next year Henry will have no income, but for each dollar that he saves this year, he will have 1 + r dollars available to spend. In terms of r, what fraction of his income should Henry save this year so that next year the amount he was available to spend will be equal to half the amount that he spends this year? A. $$\frac{1}{(r+2)}$$ B. $$\frac{1}{2r+2}$$ C. $$\frac{1}{3r+2}$$ D. $$\frac{1}{r+3}$$ E. $$\frac{1}{2r+3}$$ Discussed here: this-year-henry-will-save-a-certain-amount-of-his-income-100891.html _________________ Current Student Joined: 23 May 2013 Posts: 188 Location: United States Concentration: Technology, Healthcare Schools: Stanford '19 (M) GMAT 1: 760 Q49 V45 GPA: 3.5 Re: Jim earns$I this year and will not earn anything next year  [#permalink]

### Show Tags

25 Feb 2014, 06:55
2
For those who want an answer to this question specifically:

This year, Jim ears $1 and deposits x of that into his account, leaving him with (1-x) to spend. Next year, Jim earns an interest of x*b, leaving him with a total of x + x*b in his bank account, also to spend. Thus, we want to find x such that: $$(1 - x) = x + xb$$ $$1 = 2x + xb$$ $$1 = x(b+2)$$ $$x = 1/(b+2)$$ Answer: D The key is not to get confused about the interest; don't make the mistake of thinking that he only has x*b to spend, remember that interest is added on to the principle. Non-Human User Joined: 09 Sep 2013 Posts: 8800 Re: Jim earns$I this year and will not earn anything next year  [#permalink]

### Show Tags

20 Jul 2018, 21:21
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.
_________________
Re: Jim earns $I this year and will not earn anything next year &nbs [#permalink] 20 Jul 2018, 21:21 Display posts from previous: Sort by # Jim earns$I this year and will not earn anything next year

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.