After a 5% raise, Kim has a salary of $40,530. What was Kim’s salary

Question

After a 5% raise, Kim has a salary of $40,530. What was Kim’s salary before the raise?

A. $2,026.50

B. $38,503.50

C. $38,600.00

D. $42,556.50

E. $42,663.16

KSBGC · Answer

40530 is 105% of the previous salary.

(40530/105)*100 = 38600.

The best answer is C.

GmatPrime · Answer

Given,
after 5% raise, new salary=$40,530

Let's assume original salary=x

This gives us the following equation

5% of x + original salary = $40,530

i.e.   + x = 40,530

21x/20 = 40,530
x= 40,530 * 20/21
x = 38600

Cheers!

ManifestDreamMBA · Answer

Substitution might be faster.
A (too small), D and E (number more than 40530) are out
checking with 38600
5% of 38600 = 1930
38600 + 1930 = 40530

volt69890 · Answer

Kim got a raise (percent increase) so answer D and E are false since they would result from a percent decrease.

You can deduce that answer A is false since $2,026.50* 1.05 is unlikely going to be equal to $40,530. This leaves you with B or C:

B. 38,503*0.05 = 38,503*(0.10/2) = 3850.3/2 = 1925.15 (The fact that are decimal units already tells you the answers is wrong).
And 38,503 + 1925.15= 40,428.15 --> WRONG

C. 38,600*0.05 = 38,600*(0.10/2) = 3860/2 = 1930.
And 38,600 + 1930 = 40,530 --> CORRECT

So answer C.

After a 5% raise, Kim has a salary of $40,530. What was Kim’s salary

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GMAT Problem Solving (PS) Questions

After a 5% raise, Kim has a salary of $40,530. What was Kim’s salary

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