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Register now and save up to $200 Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code ## In each of the last five years, Company K donated This topic has 1 expert reply and 0 member replies jjjinapinch Senior | Next Rank: 100 Posts Joined 24 Jul 2017 Posted: 83 messages #### In each of the last five years, Company K donated Thu Jul 27, 2017 12:19 pm Elapsed Time: 00:00 • Lap #[LAPCOUNT] ([LAPTIME]) In each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. Did Company K donate more than$10,000 to the scholarship fund last year?

(1) Two years ago, Company K had annual profits of $3 million and donated$15,000 to the scholarship fund
(2) Last year, Company K had annual profits of $2.5 million Official Guide question Answer: C Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums! ### GMAT/MBA Expert Rich.C@EMPOWERgmat.com Elite Legendary Member Joined 23 Jun 2013 Posted: 8718 messages Followed by: 461 members Thanked: 2747 times GMAT Score: 800 Thu Jul 27, 2017 12:32 pm Hi jjjinapinch, We can actually answer this question in a couple of different ways (depending on the information that we're given to work with). We're told that the Company donates P percent of its profits each year to a certain scholarship. Thus, to determine whether that Company donated more than$10,000 to the scholarship LAST year, we will likely need to know the Company's profits last year AND the value of P. This is a YES/NO question.

1) Two years ago, Company K had annual profits of $3 million and donated$15,000 to the scholarship fund

This Fact gives us information about TWO YEARS AGO, not last year, so it's clearly not enough information to answer the given question. However, we CAN determine the value of P (we don't technically have to do that math right now - or at all, really - but if you wanted to, you could determine....

P = 15,000/3,000,000 = 15/3,000 = 1/200 = 0.5%

Fact 1 is INSUFFICIENT

2) Last year, Company K had annual profits of $2.5 million. Fact 2 gives us the profits from LAST year, but not the value of P. Fact 2 is INSUFFICIENT Combined, we know... -Last year's profits ($2.5 million)
-The value of P (even if we didn't calculate it, we know that we COULD calculate it).

Thus, we CAN answer the question - and regardless of whether the answer is YES or NO, there will be just one definitive answer.
Combined, SUFFICIENT

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

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Contact Rich at Rich.C@empowergmat.com

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