It is currently 19 Nov 2017, 15:10

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

This year Henry will save a certain amount of his income,

Author Message
Manager
Joined: 08 Oct 2005
Posts: 94

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

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

Show Tags

05 Aug 2006, 08:19
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

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. 1 / r+2

B. 1/ 2r+2

C. 1 / 3r+2

D. r / r+3

E. 1 / 2r+3

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

Senior Manager
Joined: 22 May 2006
Posts: 368

Kudos [?]: 154 [0], given: 0

Location: Rancho Palos Verdes

Show Tags

05 Aug 2006, 11:27
Let saving amount = S and Income = I
S/I = ?

Spending = I - S
Available fund to spend = S*(1+r)
Spending/2 = S*(1+r)
(I-S)/2 = S*(1+r)
I-S = 2S(1+r)
I = S[2+2r+1]
S/I = 1 / 2r+3

Hence, E.
_________________

The only thing that matters is what you believe.

Kudos [?]: 154 [0], given: 0

Manager
Joined: 20 Mar 2006
Posts: 200

Kudos [?]: 5 [0], given: 0

Show Tags

05 Aug 2006, 11:50
---------------This year--------------Next Year
Income------100(assume)---------- 0(given)
Save--------- x\$(assume)----------No info
spend--------100-x --------------- x(1+r) given

Also given in Q.stem --> x(1+r) = (100-x)/2
i.e x+xr = 50 - x/2
i.e x+x/2+xr = 50
3x/2+xr = 50
x(r+3/2) = 50
x= 50/(r+3/2)
x = 100/(2r+3)
Therfore he has to save 1/(2r+3) of income this year

Hence E

Kudos [?]: 5 [0], given: 0

Manager
Joined: 08 Oct 2005
Posts: 94

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

Show Tags

05 Aug 2006, 21:04
freetheking wrote:
Let saving amount = S and Income = I
S/I = ?

Spending = I - S
Available fund to spend = S*(1+r)
Spending/2 = S*(1+r)
(I-S)/2 = S*(1+r)
I-S = 2S(1+r)
I = S[2+2r+1]
S/I = 1 / 2r+3

Hence, E.

OA is E good job buddy

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

Re: Henry   [#permalink] 05 Aug 2006, 21:04
Display posts from previous: Sort by

This year Henry will save a certain amount of his income,

Moderator: chetan2u

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.