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grandh01: Master | Next Rank: 500 Posts; Posts: 265; Joined: Tue Jul 03, 2012 11:04 pm; Followed by:6 members

money saved

by grandh01 » Mon Aug 13, 2012 7:43 pm

Last year Carlos saved 10 percent of
his annual earnings. This year he
earned 5 percent more than last year
and he saved 12 percent of his annual
earnings. The amount saved this year
was what percent of the amount saved
last year?
(A) 122%
(B) 124%
(C) 126%
(D) 128%
(E) 130%

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Source: Beat The GMAT — Problem Solving | Mon Aug 13, 2012 7:43 pm

coolhabhi: Master | Next Rank: 500 Posts; Posts: 141; Joined: Tue Oct 04, 2011 5:17 am; Thanked: 25 times

by coolhabhi » Mon Aug 13, 2012 8:40 pm

=> | Earned | Saved
--------------------------
Last Year | 100 | 10
This Year | 105 | 12.6

The amount saved this year as a percent of the amount saved last year = (12.6/10)*100
=>126%
Answer C.

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GMAT/MBA Expert

Anurag@Gurome: GMAT Instructor; Posts: 3835; Joined: Fri Apr 02, 2010 10:00 pm; Location: Milpitas, CA; Thanked: 1854 times; Followed by:523 members; GMAT Score:770

by Anurag@Gurome » Tue Aug 14, 2012 6:06 pm

grandh01 wrote:Last year Carlos saved 10 percent of
his annual earnings. This year he
earned 5 percent more than last year
and he saved 12 percent of his annual
earnings. The amount saved this year
was what percent of the amount saved
last year?
(A) 122%
(B) 124%
(C) 126%
(D) 128%
(E) 130%

Let us assume that Carlos' annual earnings last year = C
Then Carlos' savings last year = 10% of C = 0.1C
Carlos' earnings this year = 1.05C
Carlos' savings this year = 1.05C * 0.12 = 0.126C, which means the amount saved this year was 126% of the amount saved last year.

The correct answer is C.

Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

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GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

Re: money saved

by Scott@TargetTestPrep » Wed Mar 11, 2020 9:27 am

grandh01 wrote: ↑
Mon Aug 13, 2012 7:43 pm
Last year Carlos saved 10 percent of
his annual earnings. This year he
earned 5 percent more than last year
and he saved 12 percent of his annual
earnings. The amount saved this year
was what percent of the amount saved
last year?
(A) 122%
(B) 124%
(C) 126%
(D) 128%
(E) 130%

Let n = the amount saved last year. The amount saved this year, as a percentage of what was saved last year, is:

(1.05n * 0.12)/(0.1n) = 1.05 * 1.2 = 1.26 = 126%

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]