Dick and Jane each saved $3000 in 1989. In 1990 Dick save 8

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Dick and Jane each saved $3000 in 1989. In 1990 Dick save 8

by AAPL » Wed Oct 10, 2018 4:50 am

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Dick and Jane saved $3,000 in 1989. In 1990 Dick save 8 percent more than in 1989, and together he and Jane saved a total of $5,000. Approximately what percent less did Jane save in 1990 than in 1989?

A. 8%
B. 25%
C. 41%
D. 59%
E. 70%

OA C

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Source: Beat The GMAT — Problem Solving | Wed Oct 10, 2018 4:50 am

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Brent@GMATPrepNow: GMAT Instructor; Posts: 16207; Joined: Mon Dec 08, 2008 6:26 pm; Location: Vancouver, BC; Thanked: 5254 times; Followed by:1268 members; GMAT Score:770

by Brent@GMATPrepNow » Wed Oct 10, 2018 9:18 am

Here's the original wording:

Dick and Jane each saved $3,000 in 1989. In 1990, Dick saved 8 percent more than in 1989, and together he and Jane saved a total of $5,000. Approximately what percent less did Jane save in 1990 than in 1989?
A. 8%
B. 25%
C. 41%
D. 59%
E. 70%

In 1990, Dick saved 8 percent more than in 1989
So, Dick's savings in 1990 = 1.08($3000)
= $3240

In 1990, Dick and Jane saved a total of $5,000.
So, Jane's savings = $5,000 - $3240
= $1760

Approximately what percent less did Jane save in 1990 than in 1989?
In 1989, Jane saved $3000
$3000 - $1760 = $1240

ASIDE: We COULD convert $1240/$3000 to a percent, but that's no fun!
A faster approach is to use the answer choices to our advantage (ALWAYS check the answer choices before performing any calculations)
Notice that $1500/$3000 = 1/2 = 50%
So, $1240/$3000 must be a little less than 50%

Check the answer choices . . . . only C works

Answer: C

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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[email protected]: Elite Legendary Member; Posts: 10392; Joined: Sun Jun 23, 2013 6:38 pm; Location: Palo Alto, CA; Thanked: 2867 times; Followed by:511 members; GMAT Score:800

by [email protected] » Wed Oct 10, 2018 2:38 pm

Hi All,

We're told that Dick and Jane EACH saved $3,000 in 1989. In 1990, Dick saved 8 percent MORE than he did in 1989, and TOGETHER he and Jane saved a total of $5,000. We're asked APPROXIMATELY what percent less did Jane save in 1990 than in 1989. This question essentially comes down to the Percent Change Formula and a bit of Arithmetic. The answer choices are relatively 'spread out' though, so you can actually use some general estimation and logic to get to the correct answer without doing too much complex math.

To start, we know that the TOTAL money saved each year between the two people is:
1989: (2)($3000) = $6000
1990: $5000

Even before we discuss Dick's INCREASE in savings, we know that the TOTAL is $1000 less, so Jane has to account for that decrease. If David saved the same amount as he did in 1989, then Jane's savings would have dropped from $3000 to $2000, meaning a $1000 decrease... and that would have been 1000/3000 = 1/3 of her prior savings (re: 33 1/3%).

Dick saved 8% more money, which is LESS than 10% - meaning that his extra savings was a little LESS than $3000(.10) = $300. That extra savings is relatively small - and Jane's decrease would have to account for that approximate $300 as well. Thus, we're looking for a percent decrease that was a bit larger than 33 1/3%, but not so big (such as 59% which is almost double the 33 1/3%). There's only one answer that makes sense...

Final Answer: C

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

Contact Rich at [email protected]

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Scott@TargetTestPrep: GMAT Instructor; Posts: 8086; Joined: Sat Apr 25, 2015 10:56 am; Location: Los Angeles, CA; Thanked: 43 times; Followed by:29 members

by Scott@TargetTestPrep » Sat Oct 13, 2018 5:17 pm

AAPL wrote:GMAT Prep

Dick and Jane saved $3,000 in 1989. In 1990 Dick save 8 percent more than in 1989, and together he and Jane saved a total of $5,000. Approximately what percent less did Jane save in 1990 than in 1989?

A. 8%
B. 25%
C. 41%
D. 59%
E. 70%

Since Dick saved 8% more in 1990 than in 1989, he saved 3,000 x 1.08 = $3,240 in 1990. Since together he and Jane saved a total of $5,000 in 1990, Jane saved 5,000 - 3,240 = $1,760 in 1990. Since Jane saved $3,000 in 1989, and (3,000 - 1,760)/3,000 x 100 = 0.4133 x 100 = 41.33, she saved approximately 41% less less money in 1990 than in 1989.

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]