Mary's contract stipulated a 5% bonus for each year of employment at

Question

Mary's contract stipulated a 5% bonus for each year of employment at Company X. If Mary anticipated working at the company for 5 years but actually worked there only 4, what percent of her anticipated bonus was her actual bonus?

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%

A. 80%
B. 75%
C. 64%
D. 45%
E. 5%

GMATBusters · Answer

Let salary = 100
bonus every year = 5 % = 5
Anticipated Bonus for five year = 5*5=25
Actual Bonus = 4*5 = 20
% = (20/25) *100 = 80%

GMATisLovE · Answer

My answer is A. I am writing this to remember the option that I selected.

exc4libur · Answer

Actual: 5% every year for 4 years,  0.05*4=0.2 
Anticipated: 5% every year for 5 years,  0.05*5=0.25

Percentage.Of=\frac{Actual}{Anticipated}=\frac{0.2}{0.25}=80 %

(A) is the answer.

Abhishek009 · Answer

Let Base amount be 100

Stipulated bonus for 5 years is  5*5 = 25 
Anticipated bonus earned is  5*4 = 20

So, her anticipated bonus is  \frac{20}{25}*100  = 80% of Actual bonus, answer will be (A)

mohdtaha13 · Answer

How do we know the bonus isnt compounded?

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generis · Answer

mohdtaha13 , because the question stem does not mention compounding at all. "5% for each year of employment" does not say that the stipulated bonus comes in the form of a yearly raise, for example. It does not say that the 5 percent rate changes. It does not say that the base, from which the 5 percent is calculated, changes. True, the bonus is probably based on salary or commissions or a combination of both. But a "bonus" is usually a one-off event "over and above" regular compensation. Almost without exception, compounding questions use some form of the word "compound." There is no "compound" here. Try not to read anything extra into question stems. No mention of compounding? No compounding. (And just think: we would have to calculate (1.05)^4 and (1.05)^5 . Actual/Anticipated in that case is about 95%. No answer choices match.) Hope that helps.

GMATat60 · Answer

The bonus rate is constant of 5%
The total years = 5
Bonus received for 4 years

% bonus received =   x 100 = 80% of actually anticipated

Mary's contract stipulated a 5% bonus for each year of employment at

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Mary's contract stipulated a 5% bonus for each year of employment at

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