A baseball player signs a new contract that includes a guaranteed 10 percent increase in salary over his old contract, plus a performance bonus of up to $500. If he earns the maximum possible performance bonus, his new salary including bonus will be equivalent to a 12 percent increase over his old salary. Assuming he earns the full bonus, what will his total new salary be, in dollars?
(A) 24,500
(B) 25,000
(C) 27,500
(D) 28,000
(E) 28,500
OA - D
Free e-GMAT Live Webinar! Master SC with 90% Accuracy
LIVE: JUNE 10TH, 2023, 7-9AM PST
JOIN FREE WEBINAR: USE MEANING & LOGIC TO SOLVE 700+ LEVEL SENTENCE CORRECTION Qs with 90+% ACCURACY.
A baseball player signs a new contract
This topic has expert replies
Hello,
So, while this question looks simple, while attempting it, I couldn't somehow make out where I was going wrong. I started out with something like below,
Assuming the initial salary as N, we have,
110N/100 + 500 = 120N/100
Somehow, this doesn't seem to make sense. Please help!
Thanks
So, while this question looks simple, while attempting it, I couldn't somehow make out where I was going wrong. I started out with something like below,
Assuming the initial salary as N, we have,
110N/100 + 500 = 120N/100
Somehow, this doesn't seem to make sense. Please help!
Thanks
Oops, just realized, classic example of what nerves are capable of!Bullzi wrote:
110N/100 + 500 = 120N/100
So, the correct equation should be 110N/100 + 500 = 112N/100
Solving for N, we have N = 25000
So, 12% increase would be 28000. Ans - D
Thanks
-
[email protected]
- GMAT Instructor
- Posts: 2630
- Joined: Wed Sep 12, 2012 3:32 pm
- Location: East Bay all the way
- Thanked: 625 times
- Followed by:119 members
- GMAT Score:780
We could also say that 2% of his old salary = 500. From there
.02s = 500
s = 25,000
His old salary is 25,000, and his new salary is
1.1s + 500, or
1.1*25,000 + 500, or
27,500 + 500, or
28,000
.02s = 500
s = 25,000
His old salary is 25,000, and his new salary is
1.1s + 500, or
1.1*25,000 + 500, or
27,500 + 500, or
28,000
GMAT/MBA Expert
-
[email protected]
- GMAT Instructor
- Posts: 6904
- Joined: Sat Apr 25, 2015 10:56 am
- Location: Los Angeles, CA
- Thanked: 43 times
- Followed by:29 members
We see that the maximum bonus of $500 is equivalent to 12 - 2 = 2 percent of his old salary. Therefore, letting s = his old salary, we can create the equation:Bullzi wrote: ↑Wed Sep 20, 2017 7:38 amA baseball player signs a new contract that includes a guaranteed 10 percent increase in salary over his old contract, plus a performance bonus of up to $500. If he earns the maximum possible performance bonus, his new salary including bonus will be equivalent to a 12 percent increase over his old salary. Assuming he earns the full bonus, what will his total new salary be, in dollars?
(A) 24,500
(B) 25,000
(C) 27,500
(D) 28,000
(E) 28,500
OA - D
0.02s = 500
s = 500/0.02 = 50,000/2 = 25,000
Since his new salary (including the maximum bonus) is 12 percent more than his old salary, his new salary is 25,000 x 1.12 = $28,000.
Answer: D
Scott Woodbury-Stewart
Founder and CEO
[email protected]
See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews
