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# M01-27

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Math Expert
Joined: 02 Sep 2009
Posts: 55683

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16 Sep 2014, 00:16
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Difficulty:

5% (low)

Question Stats:

85% (01:43) correct 15% (02:09) wrong based on 224 sessions

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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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Joined: 02 Sep 2009
Posts: 55683

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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.

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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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Status: On a 600-long battle
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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

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Joined: 02 May 2016
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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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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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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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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
Joined: 18 Jun 2018
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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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Joined: 09 Mar 2018
Posts: 1003
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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.

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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

M01-27   [#permalink] 01 Apr 2019, 05:28
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# M01-27

Moderators: chetan2u, Bunuel