In each of the last five years, Company K donated p percent of its

Question

In each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. Did Company K donate more than $10,000 to the scholarship fund last year?

(1) Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund
(2) Last year, Company K had annual profits of $2.5 million

JeffTargetTestPrep · Accepted Answer

We are given that in each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. We need to determine whether company K donated more than 10,000 dollars to the scholarship fund last year.

Statement One Alone:

Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund.
 
Using the information in statement one, we can determine a value for p.

3,000,000(p/100) = 15,000

3,000,000p = 1,500,000

p = 0.5

Thus, in each of the last 5 years, company K donated 0.5% of its profits. However, since we don’t know the profit made last year, we can’t answer the question. Statement one alone is not sufficient. We can eliminate answer choices A and D.

Statement Two Alone:

Last year, Company K had annual profits of $2.5 million.

Since we do not have a value for p, statement two alone is not sufficient to answer the question. We can eliminate answer choice B.

Statements One and Two Together:

Using the information in statements one and two, we can determine that last year company K donated 0.5 percent of their 2.5 million dollar profit, or $12,500, which is more than $10,000. The two statements together are sufficient.

Answer: C

FightToSurvive · Answer

In each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. Did Company K donate more than $10,000 to the scholarship fund last year?

(1) Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund
(2) Last year, Company K had annual profits of $2.5 million

From statement 1, we can find the percentage going into funds as the question stem says in each of the last five years it has donated the same percentage.
From statement 2 we know the annual profits last year. Hence C is the answer.

gauravsaggis1 · Answer

donation= (p* annual profit)/100.

so was donation > 10000 last year.
for this we need last to last year's annual profit and value of p.
1) donation is 15000 and annual profit is also given for 2 years ago. we can calculate p from here but nothing can be said about last year donation. so not sufficient.
2) last year's profit is given but value of p is unknown. so not sufficient.

1)+2) we have both the values available. so sufficient.
answer C.
experts, am i on the right track.

adil123 · Answer

with the help of 1 you can find out the value of p 
P/100 * 3*1000000 = 15000 so value of P=0.5

2. put the value of P from 1 in 2 to get the result.
 D is the answer

mtk10 · Answer

We do not need to solve, focusing on the relation of what is being asked in question stem will get us to right answer that is C.

Statment 1- Relationship of Total profit & and funds donated give us  
Statement 2- Give us profits from last year.

We are asked this. is p*2.5 million > 10000 $.
We get p from Stat 1 & 2.5 mil fro Statment 2 . Hence C

amanvermagmat · Answer

Hi Adil123

You have solved correctly, both statements are required to answer the question. However, in this case we have to mark the answer as C, as per the rules.

kennycpacgma · Answer

Why do we assume the P is a constant rate? P could have been .0005%.

amanvermagmat · Answer

Hello

Thats because when question says 'its p percent', then it has to be a constant p. If the rate was changing every year, then it would have been mentioned in the question with something like, "the rate is variable"..

avigutman · Answer

Video solution from Quant Reasoning: Subscribe for more: https://www.youtube.com/QuantReasoning? ... irmation=1 https://www.youtube.com/watch?v=DA4EsawXW6U

dylanl1218 · Answer

One of the most valuable things I've learned about GMAT problems is to carefully analyze the question stem before digging into answer choices.

The question stem at hand asks us to determine if the company donated >10,000 last year. Based on the information in the question stem we can restate the question in algebraic form: LY * P/100 >10,000. So if we know both LY (last year profit) and P (percent donated) then we can answer the question.

(1) 3million(P/100) = 15,000. Statement 1 provides us with P but not LY so not sufficient.
(2) LY = 2.5million. Statement 2 provides us with LY but not P so not sufficient.

Both statements together provide us with LY and P so the answer is C.

GMATinsight · Answer

Answer: Option C

Video solution by  GMATinsight

https://www.youtube.com/watch?v=oZIcHt0LgUo

bumpbot · Answer

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In each of the last five years, Company K donated p percent of its

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