BTGmoderatorDC wrote: ↑

Thu Apr 02, 2020 5:20 pm

A novelist pays her agent 15% of the royalties she receives from her novels. She pays her publicist 5% of the royalties, plus a yearly fee. Did the novelist pay more to her agent last year than she paid to her publicist?

(1) The publicist's yearly fee is $2,000.
(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.

OA E

Source: Official Guide

Say the novelist received $x as royalty for her novels, last year, and paid $y as a yearly fee to the publicist.

Thus, we have to ascertain whether 15% of x > 5% of x + y.

=> Is 10% of x > y?

Let's take each statement one by one.

(1) The publicist's yearly fee is $2,000.

=> y = $2,000. But we do not have any information about x. Insufficient.

(2)The novelist earned an average of $3,500 in royalties last year on each of her novels.

We can even get to know x as we do not know the value of no. of novels. Insufficient.

(1) and (2) together

We do not have the value of x. Insufficient.

The correct answer: E

Hope this helps!

-Jay
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