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

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

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25 Dec 2017, 23:27
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Difficulty:

15% (low)

Question Stats:

87% (01:29) correct 13% (02:00) wrong based on 59 sessions

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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%

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

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

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26 Dec 2017, 13:01
My answer is A. I am writing this to remember the option that I selected.
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Re: Mary's contract stipulated a 5% bonus for each year of employment at  [#permalink]

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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, $$0.05*5=0.25$$

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

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

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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)
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Joined: 14 Sep 2017
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Re: Mary's contract stipulated a 5% bonus for each year of employment at  [#permalink]

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

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

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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.
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Mary's contract stipulated a 5% bonus for each year of employment at &nbs [#permalink] 28 Dec 2017, 15:29
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