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In each of the last five years, Company K donated

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jjjinapinch Senior | Next Rank: 100 Posts Default Avatar
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24 Jul 2017
Posted:
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In each of the last five years, Company K donated

Post 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

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    Post 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

    Final Answer: C

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