Hi LUANDATO,

We're told that a reaserch project was scheduled over the course of a 28-month period and a budget of $84,000 was alloted for the course of the entire project. After SEVEN months, the project had spent $19,800. We're asked if the project at this point was over budget or under budget and by how much money.

While you can certainly calculate the 'per month' budget of this project, the prompt gives you a 'shortcut' to help you avoid having to do that math. Notice that the overall time period is 28 months and 7 months have gone by.... that is 1/4 of the time period... which means that 1/4 of the budget should have been spent.

(1/4)($84,000) = $21,000

We're told that only $19,800 was spent (of the $21,000) that was budgeted), so the project was UNDER budget by $1,200 at that point.

Final Answer: B

GMAT assassins aren't born, they're made,
Rich