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M01-27

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M01-27  [#permalink]

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New post 16 Sep 2014, 00:16
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E

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Re M01-27  [#permalink]

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New post 16 Sep 2014, 00:16
1
Official Solution:

Max's current monthly salary is $2,000, and will be raised by 25% next month. If he decides to save exactly 25% of his salary each month, how many months will it take for Max to save $5,500?

A. 4
B. 5
C. 6
D. 7
E. 9


Max will be able to save 25% of $2,000, which is $500, during the first month. He still needs to save \(5,500 - 500 = $5,000\). Max's salary will be raised by one-fourth starting next month and will be \(2000*1.25 = $2,500\). He will be able to save \(2500*0.25 = $625\) every month starting from the second month and will save $5,000 more in 8 months (\(625*8=5000\)). Therefore it will take Max 9 months to save $5,500.


Answer: E
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Re: M01-27  [#permalink]

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New post 03 Aug 2016, 10:50
Hello Bunuel,

If it were a DS question, we couldn't assure either 8 or 9 months, which would end up being a very hard question. The day of the first payment drives the "amount of days" and therefore the number of months.

If we consider the person is saving in the exactly pay day instead of waiting the end of the month, then it would be less than nine months, right?
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Re: M01-27  [#permalink]

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New post 25 Jan 2017, 09:50
Initial salary: $2,000

Savings on first month: 1.25 * 2,000 = 2,500 - 2,000 = $500

Salary after raise: 1.25 * 2,000 = $2,500

Monthly savings after raise: 1.25 * 2,500 = $625

x = # of months of monthly savings after raise

500 + 625x = 5500
625x = 5000
x = 8

8 months + 1 month = 9 months

Answer choice
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Re: M01-27  [#permalink]

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New post 26 May 2017, 07:04
Why start saving the same month? If he will be earning 25% from next month, I assumed he will start saving 25% from next month ("If he decides to save 25%...." reads the question stem).
So I did 5500/(25% of 125%of 2000) = 5500/625 = 8.8 ~ that means 8 months and additional 1 month = 9 months.

Where did I missed it?
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Re: M01-27  [#permalink]

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New post 26 May 2017, 07:06
AkshayKS21 wrote:
Why start saving the same month? If he will be earning 25% from next month, I assumed he will start saving 25% from next month ("If he decides to save 25%...." reads the question stem).
So I did 5500/(25% of 125%of 2000) = 5500/625 = 8.8 ~ that means 8 months and additional 1 month = 9 months.

Where did I missed it?


The question says: "he decides to save exactly 25% of his salary each month..." not from next month.
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Re M01-27  [#permalink]

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New post 20 Aug 2018, 08:58
It is not clear whether he saves 2000*25% or 2500*25% in his first month.

It should be mentioned that he starts saving after his salary is raised
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Re M01-27  [#permalink]

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New post 03 Jan 2019, 12:05
I think this is a poor-quality question and I agree with explanation. Please update that Max starts saving in the current month. Even though this fact doesn't lead to another answer, it still leads to confusion. Thanks in advance
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Re: M01-27  [#permalink]

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New post 24 Jan 2019, 20:53
Bunuel Hello. I think you should consider making it clear that the savings will be from the first month by moving some of the sentences around. It isn't clear as currently written whether the savings is from the first month. Or maybe it's just me.

Thanks.



Bunuel wrote:
Max's current monthly salary is $2,000, and will be raised by 25% next month. If he decides to save exactly 25% of his salary each month, how many months will it take for Max to save $5,500?

A. 4
B. 5
C. 6
D. 7
E. 9
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Re: M01-27  [#permalink]

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New post 24 Jan 2019, 21:08
Bunuel wrote:
Max's current monthly salary is $2,000, and will be raised by 25% next month. If he decides to save exactly 25% of his salary each month, how many months will it take for Max to save $5,500?

A. 4
B. 5
C. 6
D. 7
E. 9


Initial salary = 2000

After the increase the base value changes, current salary = 2500

Now he will save 25 % of this each month = 2500 * 25/100 = 625

in 8 months he would have saved = 625 * 8 = 5000.

Answer is E
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M01-27  [#permalink]

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New post 01 Apr 2019, 05:28
the question doesn't specifically mention when he's going to start to save the salary.
so, we shd take from the first month onwards..

Initial salary = 2000
savings in first month 500

remaining savings - 5000

After 25% increase in current salary, it comes to 2500

savings 25 % of each month after hike is 2500 * 25/100 = 625

Number of months required after hike is 5000/625 = 8.

Total 8+1=9

Answer is E
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Re: M01-27  [#permalink]

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New post 26 Nov 2019, 07:21
exactly 25% of his salary each month

After reading this problem and your explanation, I understand there is a gap.

"25% of his salary" or "25% of this salary"

If you consider 1st case, then according to problem every month his salary hikes 25%. And he saves 25% of hiked salary every month.

Lets understand my point.
First month salary : x, saving is 0.25x
Second month: 1.25x, saving is 1.25*0.25*x
Third month salary: 1.25*0.25*0.25*x , saving is 1.25*0.25*0.25*0.25x
And so on...
This is what I understood from problem.
Please correct me If I am wrong.

venkivety wrote:
the question doesn't specifically mention when he's going to start to save the salary.
so, we shd take from the first month onwards..

Initial salary = 2000
savings in first month 500

remaining savings - 5000

After 25% increase in current salary, it comes to 2500

savings 25 % of each month after hike is 2500 * 25/100 = 625

Number of months required after hike is 5000/625 = 8.

Total 8+1=9

Answer is E
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M01-27  [#permalink]

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New post 27 Nov 2019, 06:22
gvij2017 wrote:
exactly 25% of his salary each month

After reading this problem and your explanation, I understand there is a gap.

"25% of his salary" or "25% of this salary"

If you consider 1st case, then according to problem every month his salary hikes 25%. And he saves 25% of hiked salary every month.

Lets understand my point.
First month salary : x, saving is 0.25x
Second month: 1.25x, saving is 1.25*0.25*x
Third month salary: 1.25*0.25*0.25*x , saving is 1.25*0.25*0.25*0.25x
And so on...
This is what I understood from problem.
Please correct me If I am wrong.

venkivety wrote:
the question doesn't specifically mention when he's going to start to save the salary.
so, we shd take from the first month onwards..

Initial salary = 2000
savings in first month 500

remaining savings - 5000

After 25% increase in current salary, it comes to 2500

savings 25 % of each month after hike is 2500 * 25/100 = 625

Number of months required after hike is 5000/625 = 8.

Total 8+1=9

Answer is E


once check the ques. it does say "will be raised by 25% next month"
the ques doesn't say that "salary will be raised every subsequent month"
hope u got it..
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M01-27   [#permalink] 27 Nov 2019, 06:22
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