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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## Beth and Jim each received a salary increase. If Jim's ##### This topic has 2 expert replies and 1 member reply ### Top Member ## Beth and Jim each received a salary increase. If Jim's ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult Beth and Jim each received a salary increase. If Jim's salary was increased by the same percent as Beth's salary, did Beth receive a greater dollar increase in salary than Jim? (1) Before the increases, Jim's salary was greater than$25,000.
(2) Before the increases, Jim's salary was 4/5 of Beth's salary.

OA B

Source: GMAT Prep

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First, it is a 'Yes/No' question. We are not looking for an exact value.

Let's look at:
1) Before the increases, Jim's salary was greater than $25,000. It does not provide any information about Beth's salary. Not sufficient. Now, let's look at: 2) Before the increases, Jim's salary was 4/5 of Beth's salary. It tells you a relationship between the two salaries. Jim's salary = 4/5 * Beth's salary Let's assume if Beth's salary is 100 then Jim's salary (4/5)*100 = 80. The question also tells us that both received the same percentage increase in salary. Let's say they both received a 10% raise that would mean Beth received a raise of 10 and Jim received a raise of 8 dollars. The question asks us who received a greater increase in salary. From above it is clear Beth did. Hence Statement 2 is sufficient. Hence, B is the correct answer. ### GMAT/MBA Expert GMAT Instructor Joined 09 Oct 2010 Posted: 1449 messages Followed by: 32 members Upvotes: 59 Top Reply BTGmoderatorDC wrote: Beth and Jim each received a salary increase. If Jim's salary was increased by the same percent as Beth's salary, did Beth receive a greater dollar increase in salary than Jim? (1) Before the increases, Jim's salary was greater than$25,000.
(2) Before the increases, Jim's salary was 4/5 of Beth's salary.
Source: GMAT Prep
$$B,J\,\,\, > 0\,\,\,\,\left[ \ \right]\,\,\,\,\,\left\{ \matrix{ \,B \to \left( {1 + x} \right)B \hfill \cr \,J \to \left( {1 + x} \right)J \hfill \cr} \right.\,\,\,\,\,\,\,\,\,\,\left( {{\rm{increase}}:\,\,x\,\,\left( \% \right)\,\, > 0} \right)$$
$$xB\mathop > \limits^? xJ\,\,\,\,\,\,\,\mathop \Leftrightarrow \limits^{x\, > \,0} \,\,\,\,\,\,\boxed{\,\,B\mathop > \limits^? J\,\,}\,$$
$$\left( 1 \right)\,\,\,\,J > 25000\,\,\,\left\{ \matrix{ \,{\rm{Take}}\,\,\left( {B,J} \right) = \left( {26000,26000} \right)\,\,\,\, \Rightarrow \,\,\,\left\langle {{\rm{NO}}} \right\rangle \,\, \hfill \cr \,{\rm{Take}}\,\,\left( {B,J} \right) = \left( {27000,26000} \right)\,\,\,\, \Rightarrow \,\,\,\left\langle {{\rm{YES}}} \right\rangle \,\, \hfill \cr} \right.$$
$$\left( 2 \right)\,\,J = {4 \over 5}B\,\,\mathop < \limits^{B\, > \,\,0} \,\,B\,\,\,\,\,\,\, \Rightarrow \,\,\,\,\,\,\,\,\left\langle {{\rm{YES}}} \right\rangle$$

This solution follows the notations and rationale taught in the GMATH method.

Regards,
Fabio.

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BTGmoderatorDC wrote:
Beth and Jim each received a salary increase. If Jim's salary was increased by the same percent as Beth's salary, did Beth receive a greater dollar increase in salary than Jim?

(1) Before the increases, Jim's salary was greater than $25,000. (2) Before the increases, Jim's salary was 4/5 of Beth's salary. Target question: Did Beth receive a greater dollar increase in salary than Jim? Given: Jim's salary was increased by the same percent as Beth's salary Statement 1: Before the increases, Jim's salary was greater than$25,000.
Since we have no information about Beth, there's no way to answer the target question with certainty.
So, statement 1 is NOT SUFFICIENT

Statement 2: Before the increases, Jim's salary was 4/5 of Beth's salary.
In other words: (Beth's OLD salary) > (Jim's OLD salary)
Let's say the salary increase = p% (aka p/100)
Then Beth's dollar increase = (p/100)(Beth's OLD salary)
And Jim's dollar increase = (p/100)(Jim's OLD salary)

As we can see, if (Beth's OLD salary) > (Jim's OLD salary), then Beth's dollar increase will be greater than Jim's dollar increase
Since we can answer the target question with certainty, statement 2 is SUFFICIENT

Cheers,
Brent

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Brent Hanneson â€“ Creator of GMATPrepNow.com
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