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PS: Pat and savings

This topic has 2 member replies
ikaplan Master | Next Rank: 500 Posts
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PS: Pat and savings

Post Tue Nov 22, 2011 11:51 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    If Pat saved $600 of his earnings last month, how much did Pat earn last month?

    (1) Pat spent 1/2 of his earnings last month for living expenses and saved 1/3 of the remainder
    (2) Of his earnings last month, Pat paid twice as much in taxes as he saved.

    Source: OG12

    OA is A

    I know that this is quite easy DS questions, but Statement (2) boggles my mind.
    Pat saved $600, and paid $1200 for taxes. If Earnings= Taxes + Savings, then Earnings= $1800

    My question is: Why B is incorrect? How do we know that Pat did not spend money on something else apart from taxes? Do we have to look at the information in Statement (1) to realize that the equation consists of living expenses as well? (I know that this is against the main DS rule- "avoid using information from one statement when considering another", but sometimes looking at the other statement helps).

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    user123321 Master | Next Rank: 500 Posts Default Avatar
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    Post Tue Nov 22, 2011 2:16 pm
    IMO A

    using A you can get A's earnings.
    using B not much info is present to get his earnings.

    user123321

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    ollapodrida Senior | Next Rank: 100 Posts Default Avatar
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    Post Tue Nov 22, 2011 8:09 pm
    ikaplan wrote:
    If Pat saved $600 of his earnings last month, how much did Pat earn last month?

    (1) Pat spent 1/2 of his earnings last month for living expenses and saved 1/3 of the remainder
    (2) Of his earnings last month, Pat paid twice as much in taxes as he saved.

    Source: OG12

    OA is A

    I know that this is quite easy DS questions, but Statement (2) boggles my mind.
    Pat saved $600, and paid $1200 for taxes. If Earnings= Taxes + Savings, then Earnings= $1800

    My question is: Why B is incorrect? How do we know that Pat did not spend money on something else apart from taxes? Do we have to look at the information in Statement (1) to realize that the equation consists of living expenses as well? (I know that this is against the main DS rule- "avoid using information from one statement when considering another", but sometimes looking at the other statement helps).
    (1) Savings = 1/3*(1-1/2)*Earnings = 600: Sufficient -> We can solve for earnings

    (2) Taxes = 2*Savings = 2*600 = 1200. We are not told how taxes or savings relate to earnings: Insufficient -> There's no way to solve for earnings without a relationship.

    Earnings does not necessarily have to equal taxes + savings, so you cannot apply that formula here.

    Thanked by: ikaplan

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