Percentage reduction problem - Help wanted please

This topic has expert replies
Senior | Next Rank: 100 Posts
Posts: 46
Joined: Mon Aug 25, 2008 9:06 am
Thanked: 1 times
A part-time employee whose hourly wage was increased by 25 percent decided to reduce the number of hours worked per week so that the employee’s total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?


(A) 12.5%
(B) 20%
(C) 25%
(D) 50%
(E) 75%

The answer is B

Legendary Member
Posts: 1153
Joined: Wed Jun 20, 2007 6:21 am
Thanked: 146 times
Followed by:2 members
madsport wrote:A part-time employee whose hourly wage was increased by 25 percent decided to reduce the number of hours worked per week so that the employee’s total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?


(A) 12.5%
(B) 20%
(C) 25%
(D) 50%
(E) 75%

The answer is B
Wage increased 25%
Weekly income remains the same

let initial wage = $10/hour
hours worked during the week = 5

10*5 = $50 [ weekly income]

wage increased 25%
10*1.25 = 12.5

Weekly income remains unchanged
12.5x =50
x=4

percentage change

5-4/5 *100 = 20%

Hence B is the answer.

Legendary Member
Posts: 2467
Joined: Thu Aug 28, 2008 6:14 pm
Thanked: 331 times
Followed by:11 members

by cramya » Mon Sep 08, 2008 4:50 pm
For percentage problems pick 100 (works most of the times) and pick other numbers if you have to the ones that are divisible by 100, easy to multiply etc...

Let us assume that the employee works 10 hours a week
Let the hourly hourly wage be 100.
New hourly wage = 125

Original salary = 100*10 = 1000
New Salary = 125*10 = 1250

To get 1250 he has to work 10 hours.
To get 1000(original salary) = ?? hours

salary hours
1250 10
1000 ?

10/1250*1000 = 8

Therefore the difference in hours = 2 It doesnt stop here since we need to find 2 is what % of10.

100/10*2 = 20%

Therefore there needs to be a 20% reduction of hours with the hourly wage increase so that he earns the same as before($1000)

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 7243
Joined: Sat Apr 25, 2015 10:56 am
Location: Los Angeles, CA
Thanked: 43 times
Followed by:29 members

by Scott@TargetTestPrep » Thu Jan 04, 2018 10:19 am
madsport wrote:A part-time employee whose hourly wage was increased by 25 percent decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?


(A) 12.5%
(B) 20%
(C) 25%
(D) 50%
(E) 75%
We can let the employee's wage = w, the number of hours = h, and the percentage reduction = n. Thus:

wh = (1 - n/100)(w)(h)(1.25)

We can divide both sides by wh, convert 1.25 to 5/4, and re-express (1-n/100) as (100 - n)/100 to get:

1 = (100 - n)/100 x 5/4

4/5 = (100 - n)/100

400 = 5(100 - n)

80 = 100 - n

n = 20

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage