It is currently 21 Jan 2018, 16:41

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 June
Open Detailed Calendar

Mary's contract stipulated a 5% bonus for each year of employment at

Author Message
TAGS:

Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 43348

Kudos [?]: 139709 [0], given: 12794

Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

25 Dec 2017, 23:27
00:00

Difficulty:

25% (medium)

Question Stats:

81% (01:22) correct 19% (00:43) wrong based on 32 sessions

HideShow timer Statistics

Mary's contract stipulated a 5% bonus for each year of employment at Company X. If Mary anticipated working at the company for 5 years but actually worked there only 4, what percent of her anticipated bonus was her actual bonus?

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%
[Reveal] Spoiler: OA

_________________

Kudos [?]: 139709 [0], given: 12794

Manager
Joined: 27 Oct 2017
Posts: 89

Kudos [?]: 37 [0], given: 34

Location: India
GPA: 3.64
WE: Business Development (Energy and Utilities)
Re: Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

26 Dec 2017, 00:45
Let salary = 100
bonus every year = 5 % = 5
Anticipated Bonus for five year = 5*5=25
Actual Bonus = 4*5 = 20
% = (20/25) *100 = 80%
_________________

If you like my post, encourage me by providing Kudos...
Happy Learning...

Kudos [?]: 37 [0], given: 34

Manager
Joined: 06 Aug 2017
Posts: 80

Kudos [?]: 16 [0], given: 32

GMAT 1: 570 Q50 V18
GMAT 2: 610 Q49 V24
Re: Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

26 Dec 2017, 13:01
My answer is A. I am writing this to remember the option that I selected.
_________________

-------------------------------------------------------------------------------
Kudos are the only way to tell whether my post is useful.

GMATPREP1: Q47 V36 - 680
Veritas Test 1: Q43 V34 - 630
Veritas Test 2: Q46 V30 - 620
Veritas Test 3: Q45 V29 - 610

Kudos [?]: 16 [0], given: 32

Manager
Joined: 24 Nov 2016
Posts: 151

Kudos [?]: 32 [0], given: 40

Re: Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

27 Dec 2017, 03:18
Bunuel wrote:
Mary's contract stipulated a 5% bonus for each year of employment at Company X. If Mary anticipated working at the company for 5 years but actually worked there only 4, what percent of her anticipated bonus was her actual bonus?

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%

Actual: 5% every year for 4 years, $$0.05*4=0.2$$
Anticipated: 5% every year for 5 years, $$0.05*5=0.25$$

$$Percentage.Of=\frac{Actual}{Anticipated}=\frac{0.2}{0.25}=80$$%

Kudos [?]: 32 [0], given: 40

Board of Directors
Status: QA & VA Forum Moderator
Joined: 11 Jun 2011
Posts: 3250

Kudos [?]: 1183 [0], given: 327

Location: India
GPA: 3.5
Re: Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

27 Dec 2017, 10:29
Bunuel wrote:
Mary's contract stipulated a 5% bonus for each year of employment at Company X. If Mary anticipated working at the company for 5 years but actually worked there only 4, what percent of her anticipated bonus was her actual bonus?

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%

Let Base amount be 100

Stipulated bonus for 5 years is $$5*5 = 25$$
Anticipated bonus earned is $$5*4 = 20$$

So, her anticipated bonus is $$\frac{20}{25}*100$$ = 80% of Actual bonus, answer will be (A)
_________________

Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )

Kudos [?]: 1183 [0], given: 327

Intern
Joined: 14 Sep 2017
Posts: 4

Kudos [?]: 0 [0], given: 0

Re: Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

27 Dec 2017, 12:21
How do we know the bonus isnt compounded?

Sent from my iPhone using GMAT Club Forum

Kudos [?]: 0 [0], given: 0

VP
Joined: 22 May 2016
Posts: 1258

Kudos [?]: 467 [0], given: 683

Mary's contract stipulated a 5% bonus for each year of employment at [#permalink]

Show Tags

28 Dec 2017, 15:29
Bunuel wrote:
Mary's contract stipulated a 5% bonus for each year of employment at Company X. If Mary anticipated working at the company for 5 years but actually worked there only 4, what percent of her anticipated bonus was her actual bonus?

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%

mohdtaha13 wrote:
How do we know the bonus isnt compounded?

mohdtaha13 , because the question stem does not mention compounding at all.

"5% for each year of employment" does not say that the stipulated bonus comes in the form of a yearly raise, for example.

It does not say that the 5 percent rate changes.

It does not say that the base, from which the 5 percent is calculated, changes.

True, the bonus is probably based on salary or commissions or a combination of both.
But a "bonus" is usually a one-off event "over and above" regular compensation.

Almost without exception, compounding questions use some form of the word "compound."
There is no "compound" here. Try not to read anything extra into question stems.
No mention of compounding? No compounding.

(And just think: we would have to calculate $$(1.05)^4$$ and $$(1.05)^5$$. Actual/Anticipated in that case is about 95%. No answer choices match.)

Hope that helps.
_________________

At the still point, there the dance is. -- T.S. Eliot
Formerly genxer123

Kudos [?]: 467 [0], given: 683

Mary's contract stipulated a 5% bonus for each year of employment at   [#permalink] 28 Dec 2017, 15:29
Display posts from previous: Sort by