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# Two years ago Claude spent 15 percent of his total income on travel re

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Two years ago Claude spent 15 percent of his total income on travel re  [#permalink]

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11 Jan 2018, 23:41
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45% (medium)

Question Stats:

61% (02:14) correct 39% (03:07) wrong based on 27 sessions

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Two years ago Claude spent 15 percent of his total income on travel related expenses. Last year he earned 10 percent less than the year before, but also spent 15 percent of his total income on travel. If he earned 15 percent more this year than last, but again spent 15 percent of his total income on travel, the amount he spent on travel this year is what percent of the amount he spent on travel last year?

A. 85%
B. 110%
C. 115%
D. 118%
E. 125%

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Two years ago Claude spent 15 percent of his total income on travel re  [#permalink]

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12 Jan 2018, 10:10
Bunuel wrote:
Two years ago Claude spent 15 percent of his total income on travel related expenses. Last year he earned 10 percent less than the year before, but also spent 15 percent of his total income on travel. If he earned 15 percent more this year than last, but again spent 15 percent of his total income on travel, the amount he spent on travel this year is what percent of the amount he spent on travel last year?

A. 85%
B. 110%
C. 115%
D. 118%
E. 125%

Let amount earned 2 years ago = $100 Amount earned 1 year ago: (.9)($100) = $90 Amount spent on travel: (.15)(90) =$13.50

Amount earned this year: (1.15)($90) =$103.50
Amount spent on travel: (.15)($103.50) =$15.525

This year's travel amount is what percent of last year's travel amount?
$$\frac{Part}{Whole}=\frac{15.525}{13.5}\approx{\frac{15}{13}}\approx{1.15}*100 = 115$$ %

*Solving this way, the amount he spent on travel expenses 2 years ago does not matter. (.15*100 = $15) _________________ SC Butler has resumed! Get two SC questions to practice, whose links you can find by date, here. Choose life. Senior Manager Joined: 07 Dec 2017 Posts: 316 GMAT 1: 660 Q50 V30 Re: Two years ago Claude spent 15 percent of his total income on travel re [#permalink] ### Show Tags 12 Jan 2018, 10:24 1 My question is to u is , why we need to take assumption for income of two years ago, We need to find change in expenditure percentage of this and last year only So how 2years earlier income information is relevant Sent from my ONEPLUS A3003 using GMAT Club Forum mobile app Senior SC Moderator Joined: 22 May 2016 Posts: 3548 Two years ago Claude spent 15 percent of his total income on travel re [#permalink] ### Show Tags 12 Jan 2018, 12:17 Bunuel wrote: Two years ago Claude spent 15 percent of his total income on travel related expenses. Last year he earned 10 percent less than the year before, but also spent 15 percent of his total income on travel. If he earned 15 percent more this year than last, but again spent 15 percent of his total income on travel, the amount he spent on travel this year is what percent of the amount he spent on travel last year? A. 85% B. 110% C. 115% D. 118% E. 125% AshutoshB wrote: My question is to u is , why we need to take assumption for income of two years ago, We need to find change in expenditure percentage of this and last year only So how 2years earlier income information is relevant AshutoshB - you are 100 percent correct. We don't need it. I find, however, that if testers are assigning values, and only one variable is asked for in the prompt -- they often waste time trying to decide whether or not they need to consider the other variable. The prompt asks specifically for travel expenses for this year and last year. It is abundantly clear that expenses from two years ago do not figure into anything. If using 100, however, and not sure whether or not [some variable from some time before] matters, people test it. 100 = 90 percent of something, and the "something" turns out to be$111.11 . . .
I have seen that $111.11 figure rattle people a few too many times. So I "controlled for nerves" and left it alone. I should have known better, and explained both cases. +1 to you If a tester is cool under pressure, she will realize that expenses are a function of income. If the prompt asks about only two years' of expenses? Then we need to consider only those two years' income. Let 100 = 90 percent of income two years ago. Perfect! Last year's income =$100 (and it does not matter that 100 is 90 percent of something; it is still 100!)
Last year's amount spent on travel: (.15)$100 =$15 = 15
This year's income, 15 percent raise: (1.15)(100) = $115 This year's amount spent on travel: (.15)$115 = \$17.25 = 17$$\frac{1}{4}$$
This year's travel amount as fraction of last year's travel amount (fractions are easier):

$$\frac{\frac{69}{4}}{15} = \frac{69}{4} * \frac{1}{15} =\frac{69}{60} = \frac{23}{20} = 1.15 * 100 = 115$$ percent
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Two years ago Claude spent 15 percent of his total income on travel re   [#permalink] 12 Jan 2018, 12:17
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