Jack used to save 20% of his monthly salary. His salary increased by

Question

Jack used to save 20% of his monthly salary. His salary increased by 50%. What is the percentage increase in his monthly savings?
 
(1) His monthly expenditure remained the same.
(2) His earlier salary was $4000 per month.

This is a  Data Sufficiency Butler Question

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Gmat860sanskar · Answer

Given : Jack Saves 20 percent of his salary

Salary now increase by 50 %

We need new percent increase in Saving ( Important to remember we need percent not actual amount)

Statement 1 : His monthly expenditure remained the same.

Great! so we know that Jack is not spending more now instead he is a disciplined man and spending the same amount

So suppose his earlier salary was 1000 dollars, he would have saved 200 dollars. Now his salary is increased to 1500 dollar, so he is saving 700 dollar now.

So percent increase will be now ((700 - 500 )/ 500)* 100 = 250%

As this is percentage question, this statement is sufficient.

Statement 2 : His earlier salary was $4000 per month.

Naa, we don't know the current spending. so this statement is not sufficient.

Ans - A

Dereno · Answer

Let the initial monthly salary be 100x. Jack saves 20% of the monthly salary. And E be the expenditure for the month.

During the initial month, savings = 20%*(100x) = 20x

Expenditure for the initial month = 80x

The salary increased by 50%.

Therefore, the increased salary = 150x.

% increase in saving ?

Statement 1:

His monthly expenditure remained the same.

If his monthly expenditure remained the same, then expenditure for the next month = 80x

Salary = 150x

Expenditure = 80x

Saving = 70x

% increase of savings = (70x - 20x)/ (20x) = 250%.

Hence,  Sufficient

Statement 2:

(2) His earlier salary was $4000 per month.

Without knowing the expenditure, we cannot say anything about the savings.

Hence,  Insufficient

Option A

ExpertsGlobal5 · Answer

Explanation Video:

https://www.youtube.com/watch?v=7hNVAwsGA-E

omar321 · Answer

Hi

I am unable to see the complete question with options, can someone guide pls

Bunuel · Answer

Hi,

The question is complete.

This is a data sufficiency question. Options for DS questions are always the same and usually omitted on the site.

The data sufficiency problem consists of a question and two statements, labeled (1) and (2), in which certain data are given. You have to decide whether the data given in the statements are sufficient for answering the question. Using the data given in the statements, plus your knowledge of mathematics and everyday facts (such as the number of days in July or the meaning of the word counterclockwise), you must indicate whether—

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient to answer the question asked.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient to answer the question asked.
C. BOTH statements (1) and (2) TOGETHER are sufficient to answer the question asked, but NEITHER statement ALONE is sufficient to answer the question asked.
D. EACH statement ALONE is sufficient to answer the question asked.
E. Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed.

Hope this helps.

lucas898 · Answer

The answer is A. Statement 1 alone is sufficient. If expenditure remained the same, the entire salary increase goes directly into savings. Old salary $4000, savings $800, expenditure $3200. New salary $6000, savings $2800. That is a 250% increase in savings. Statement 2 alone just gives us the salary but without knowing expenditure we cannot calculate the change in savings. So A is the answer.

Jack used to save 20% of his monthly salary. His salary increased by

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GMAT Data Sufficiency (DS) Questions

Jack used to save 20% of his monthly salary. His salary increased by

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