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Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
82% (01:08) correct
18%
(01:23)
wrong
based on 106
sessions
History
Date
Time
Result
Not Attempted Yet
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.
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
Joined: 19 Apr 2016
Last visit: 14 Jul 2019
Posts: 192
Location: India
Schools: Jindal '20 Kelley '20 Broad '20 Carey '20 Mays '20
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE:Web Development (Computer Software)
annusngh
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
EMPOWERgmatRichC
Expert
Major Poster
Joined: 19 Dec 2014
Last visit: 31 Dec 2023
Posts: 21,775
Status:GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Expert reply
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:
GMAT assassins aren't born, they're made,
Rich
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:
GMAT assassins aren't born, they're made,
Rich
annusngh
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).
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annusngh
Video Explanation
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