BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

contract

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 265
Joined: Tue Jul 03, 2012 11:04 pm
Followed by:6 members

contract

by grandh01 » Wed Aug 08, 2012 2:23 pm
A union contract specifies a 6 percent
salary increase plus a $450 bonus for
each employee. For a certain employee,
this is equivalent to an 8 percent salary
increase. What was this employee's
salary before the new contract?
(A) $21,500
(B) $22,500
(C) $23,500
(D) $24,300
(E) $25,000
Top
Source: — Problem Solving |
User avatar
Master | Next Rank: 500 Posts
Posts: 210
Joined: Thu Mar 08, 2012 11:24 pm
Thanked: 62 times
Followed by:3 members

by niketdoshi123 » Wed Aug 08, 2012 3:22 pm
grandh01 wrote:A union contract specifies a 6 percent
salary increase plus a $450 bonus for
each employee. For a certain employee,
this is equivalent to an 8 percent salary
increase. What was this employee's
salary before the new contract?
(A) $21,500
(B) $22,500
(C) $23,500
(D) $24,300
(E) $25,000
let the salary before the new contract of the employ = x
6% salary increase = x + 6% of x = 1.06x
8% salary increase = x + 8% of x = 1.08x

According to the question

6% salary increase + $450 = 8% salary increase
1.06x + $450 = 1.08x
=> .02x = $450
=> x = $450/.02 = [spoiler]$22500[/spoiler]

The correct answer is B
Top
Master | Next Rank: 500 Posts
Posts: 392
Joined: Thu Jan 15, 2009 12:52 pm
Location: New Jersey
Thanked: 76 times

by truplayer256 » Wed Aug 08, 2012 8:28 pm
Let the employee's salary before the new contract be $x. It then follows that:

1.06(x) + 450 = 1.08(x)
450 = x/50 => x = 450(50) = $22,500
Choose B.
Top
Post new topic Post Reply
• Page 1 of 1