If Chris saved $400 of his earnings last month, How much did Chris ear

Question

If Chris saved $400 of his earnings last month, How much did Chris earn last month?

1) Chris spent 1/3 of his last month's earnings on rentals saved 1/4 of the reaminder.

2) last month, Chris paid three times as much in loan payments as he saved.

0akshay0 · Answer

St I Chris spent 1/3 of his last month's earnings on rentals saved 1/4 of the remiander Let Chris earning = x x/3 = rentals (1-1/3)*(1/4)*x = 400 (2/3)(1/4)*x = 400 x/6 = 400 x = 2400 -------------Sufficient St II Last month, Chris paid three times as much in loan payments as he saved although loan payments = 3*savings = 3*400 = 1200 nothing says that the loan payments and saving are the only things that Chris did with last months income ------------Insufficient Hence option A is correct Hit Kudos if you liked it 8-)

EMPOWERgmatRichC · Answer

Hi All,

We're told that Chris saved $400 of his earnings last month. We're asked for the total amount Chris EARNED last month.

1) Chris spent 1/3 of his last month's EARNINGS on rentals and saved 1/4 of the remainder.

Fact 1 tells us that 1/4 of 2/3 of Chris's earnings were saved. We can combine this information with what we were told in the prompt (that Chris Saved $400) and 'work backwards' to find the total earned.

$400 = 1/4 of the 'remainder' 
$1600 = the 'remainder'

the 'remainder' = $1600 = 2/3 of the total earned 
$1600 = (2/3)(X) 
$2400 = X 
Thus, Chris earned $2400, spent 1/3 of that (re: $800) on rentals and had a 'remainder of $2400-$800 = $1600. He saved 1/4 of that remainder (which matches the $400 that the prompt stated was the savings). 
Fact 1 is SUFFICIENT

2) Last month, Chris paid three times as much in loan payments as he saved.

With Fact 2, we can determine the amount of money that Chris spent on loan payments (3 times $400 = $1200), but we don't know if Chris spent money on anything ELSE. Fact 2 ultimately tells us that Chris earned AT LEAST $1200+$400 = $1600, but he could have earned more than that. 
Fact 2 is INSUFFICIENT

Final Answer:  A

GMAT assassins aren't born, they're made, 
Rich

Bunuel · Answer

Official Explanation

Let's dive right into the statements, evaluating them separately first. If Chris' earnings amounted to x dollars, then statement (1) says that he spent x/3. After doing so, he'll have x - x/3 dollars. He saved 1/4 of that, so the amount he saved was 1/4(x - x/3). And we are told that the amount that he saved was $400, so we know

\frac{1}{4}(x - \frac{x}{3}) = 400

That's an equation with one variable, so it's solvable for x. So Statement (1) is sufficient. Turning to Statement (2): it is not so generous with information. It doesn't even mention earnings--what we are looking for. It introduces an irrelevant comparison between his savings and loan payments, which we know nothing about. If we wrote an equation, it would have a bunch of variables, not one. So this statement is insufficient.

The correct answer is (A).

Bunuel · Answer

Video Explanation

16AAmrmON0s

bumpbot · Answer

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If Chris saved $400 of his earnings last month, How much did Chris ear

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If Chris saved $400 of his earnings last month, How much did Chris ear

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