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Difficulty:
35%
(medium)
Question Stats:
68% (01:39) correct
32%
(01:22)
wrong
based on 82
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Jay’s net income equals his salary minus taxes. By what percent did Jay’s net income change on April 1, 2010?
(1) Jay’s salary increased by 5 percent on April 1, 2010.
(2) Jay’s taxes increased by 10 percent on April 1, 2010.
(1) Jay’s salary increased by 5 percent on April 1, 2010.
(2) Jay’s taxes increased by 10 percent on April 1, 2010.
24 Jan 2026, 01:35
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Jay’s net income equals his salary minus taxes. By what percent did Jay’s net income change on April 1, 2010?
(1) Jay’s salary increased by 5 percent on April 1, 2010.
(2) Jay’s taxes increased by 10 percent on April 1, 2010.
Given: Net Income = Salary - Taxes
Therefore, we would need to have the information of both - salary change and tax change to calculate the value of Jay's net income change percent.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: Jay’s salary increased by 5 percent on April 1, 2010.
Let Jay's original salary be S and taxes on that salary be T.
Thus, Net Income = S - T
New salary of Jay (after April 1, 2010) = 1.05S
However, this statement does not give us any information about T or the values of S and T as such, hence it is insufficient alone.
Now, let's take a look at Statement 2 closely:
Statement 2: Jay’s taxes increased by 10 percent on April 1, 2010.
Assuming Jay's original salary to be S and taxes on that salary be T: new taxes that Jay would have to pay = 1.1T. However, this statement does not give us any information about S or the values of S and T as such, hence it is insufficient alone.
Now, let's consider both the statements together to determine the answer:
Originally, Net Income = S-T
Now, Net Income = 1.05S - 1.1T
However, as you can see, we still do not have any values for S and T. Thus, we cannot arrive at the required answer using them both as well.
Hence, the correct answer is Option E - Neither statement alone nor together is sufficient.
Hope this helps!
(1) Jay’s salary increased by 5 percent on April 1, 2010.
(2) Jay’s taxes increased by 10 percent on April 1, 2010.
Given: Net Income = Salary - Taxes
Therefore, we would need to have the information of both - salary change and tax change to calculate the value of Jay's net income change percent.
Now, let's look at each statement individually and then at both of them together (if required):
Statement 1: Jay’s salary increased by 5 percent on April 1, 2010.
Let Jay's original salary be S and taxes on that salary be T.
Thus, Net Income = S - T
New salary of Jay (after April 1, 2010) = 1.05S
However, this statement does not give us any information about T or the values of S and T as such, hence it is insufficient alone.
Now, let's take a look at Statement 2 closely:
Statement 2: Jay’s taxes increased by 10 percent on April 1, 2010.
Assuming Jay's original salary to be S and taxes on that salary be T: new taxes that Jay would have to pay = 1.1T. However, this statement does not give us any information about S or the values of S and T as such, hence it is insufficient alone.
Now, let's consider both the statements together to determine the answer:
Originally, Net Income = S-T
Now, Net Income = 1.05S - 1.1T
However, as you can see, we still do not have any values for S and T. Thus, we cannot arrive at the required answer using them both as well.
Hence, the correct answer is Option E - Neither statement alone nor together is sufficient.
Hope this helps!
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