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This year Henry will save a certain amount of his income

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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 07 Feb 2016, 09:34
Experts:

In this type of problems (long word problems with variables in the choices) I face 2 challenges:
1) Speed: It usually takes me more than 60 secs just to read and understand what is going in it. Is the reading speed lower than the normal for a guy who aims Q50/51 or maybe for anyone? Do i need more practice so that I can improve the speed?
2) choosing between algebra and vic(using numbers) method: how much time should one spend to decide which way one should go- algebra or vic? What indicators should we look for each approach i.e. algerbra or vic? I usually know that I have taken an inefficient approach only when I am well past half way around 3mins.

Any advice much appreciated. Thanks
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 27 May 2017, 22:28
Income = Save (X) + Spend (Y)

For $1 saved Henry gets $(1+r)
So, next year he will get $(X*(1+r)) by saving $X this year

We are given that Y/2 = X(1+r)
Y = 2X(1+r)

We need to find X/(X+Y)

X / (X + 2X(1+r))
1 / (1+2+2r)
1 / (2r + 3) [option E]
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 26 Jul 2017, 13:19
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 has available to spend will be equal to half the amount that he spends this year?

1/(r + 2)
1/(2r + 2)
1/(3r + 2)
1/(r + 3)
1/(2r + 3)
Explanation:

Let the total income of Henry be H and let the amount he saves be s.
⇒ Amount he spends = H − s

Given that for each dollar that he saves this year, he will have 1 + r dollars available to spend.
⇒ Amount Henry will have next year = s(1 + r)

The amount Henry has available to spend next year should be half the amount that he spends this year.
⇒ s(1 + r) = ½ × (H − s)
⇒ 2s(1 + r) = H − s
⇒ H = 2s(1 + r) + s
⇒ H = s(3 + 2r)

We have to find the fraction of his income should Henry save this year, i.e. we have to find s/H. From above equation:
s/H = 1/(3 + 2r)

Answer: E.
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 01 Sep 2017, 06:41
udaymathapati wrote:
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. \(\frac{1}{2r+3}\)


income - save = spent

save*(1 + r) = (1/2)*spent

save*(1 + r) = (1/2)*(income - save)

save*(1 + r) + (1/2)*save = (1/2)*income

save (1 + r + 1/2) = 1/2*income

save*(3/2 + r) = 1/2*income

save*(3 + 2r) = income

save / income = 1/(2r + 3)
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 05 Sep 2017, 17:47
udaymathapati wrote:
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. \(\frac{1}{2r+3}\)


We can let s = the amount of money, in dollars, Henry saves this year and t = his income, in dollars, this year; thus, the amount that he spends this year is (t - s). Since for each dollar that he saves this year he has 1 + r dollars available to spend next year, he has s(1 + r) dollars to spend next year. Furthermore, since this amount is half what he spends this year, we have:

s(1 + r) = (1/2)(t - s)

2s(1 + r) = t - s

2s + 2sr = t - s

2sr + 3s = t

s(2r + 3) = t

s = t/(2r + 3)

s = [1/(2r + 3)] * t

So, the amount he saves this year is 1/(2r + 3) of his income.

Answer: E
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 19 Oct 2017, 10:32
Bunuel wrote:
udaymathapati wrote:
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. \(\frac{1}{2r+3}\)


Let \(x\) be the fraction of saving, and \(I\) be the income income.

Set the equation:
\(x*I*(1+r)=\frac{(1-x)*I}{2}\), \(I\) cancels out.

Here LHS is "the amount he has available to spend next year", which according to the stem equals to RHS: "half the amount that he spends this year".

\(x=\frac{1}{3+2r}\)

Answer: E.


Hi Bunuel

I didnt understand the equation that u have formed..

How did u get (1-x)* I

Pls help..thanks
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 19 Oct 2017, 10:35
zanaik89 wrote:
Bunuel wrote:
udaymathapati wrote:
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. \(\frac{1}{2r+3}\)


Let \(x\) be the fraction of saving, and \(I\) be the income income.

Set the equation:
\(x*I*(1+r)=\frac{(1-x)*I}{2}\), \(I\) cancels out.

Here LHS is "the amount he has available to spend next year", which according to the stem equals to RHS: "half the amount that he spends this year".

\(x=\frac{1}{3+2r}\)

Answer: E.


Hi Bunuel

I didnt understand the equation that u have formed..

How did u get (1-x)* I

Pls help..thanks


I tried to explain this here: https://gmatclub.com/forum/this-year-he ... l#p1276031
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 11 Dec 2017, 06:53
Bunuel do you have anymore problem links like this to practice?

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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 11 Dec 2017, 07:34
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sadikabid27 wrote:
Bunuel do you have anymore problem links like this to practice?

Posted from my mobile device


Somewhat similar questions:
https://gmatclub.com/forum/mary-decided ... 19290.html
https://gmatclub.com/forum/a-man-saves- ... 18796.html
https://gmatclub.com/forum/last-year-ca ... 67602.html
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Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 11 Dec 2017, 10:50
Assume he makes 1 dollar this year. That way his income saved will equal the fraction of his income saved.

This year income:1
Saved: S
Spent: 1-S

Next Year:
Spent: (1+R)S

"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?"

1/2(1-S)=(1+R)(S)

.5-.5S=S+SR
.5=1.5S+SR
1=3S+2SR
1=S(3+2R)
S=(1)/(3+2R)
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 12 Dec 2017, 15:00
udaymathapati wrote:
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. \(\frac{1}{2r+3}\)


1. Read and understand. We are looking for the fraction \((\frac{x}{I})\)saved such that the amount available to spend \((y)\) this year would be half of the disposed income\((I)\) of yesteryear.

2. Note that the amount saved can be deducted from the amount disposed of and we can then find the amount required to be saved (x), i.e \(I-y\)

Now the best approach can be either algebraic or arithmetic, I will go for a combination of both. I will start with arithmetic, i.e plugging in numbers as this can allow for a quick backsolve if running out of time.

Now to choose numbers just a cursory look at the problem would suggest that multiples of 2 and 3 would make for straightforward (I). Why we are looking for three parts in two periods( I know this may be confusing, but it's not necessary to solve the problem), however, it does help to backsolve. Then I will choose 0 or 1 for \(r\) (easy to manipulate).

Now onto the solution:

Say\(I = 6\) and\(r=0\)

Then \(x= \frac{y}{2}= \frac{(6-x)}{2}\)

\(2x= 6-x; 3x= 6; x=2\)

Our fraction is \(\frac{2}{6}= \frac{1}{3}\)

Only option \(E\) fulfills this when r= 0. Hence, \(E\)
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Re: This year Henry will save a certain amount of his income [#permalink]

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New post 13 Jan 2018, 05:01
current: income = x saving = y spending = x-y
next: income = 0, saving = 0, spending = y(1+r) (as every dollar saved, (1+r)$ will be spent)

now to determine savings/income = y/x , such that y(1+r) = (x-y)/2
=> 2y(1+r) = x - y
=> y + 2y(1+r) = x
=> y(2r+3) = x => y/x = 1/(2r+3) => (E)
Re: This year Henry will save a certain amount of his income   [#permalink] 13 Jan 2018, 05:01
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