Last year, Andre's company gave him a year-end bonus that

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BTGmoderatorLU: Moderator; Posts: 2505; Joined: Sun Oct 15, 2017 1:50 pm; Followed by:6 members

Last year, Andre's company gave him a year-end bonus that

by BTGmoderatorLU » Tue Oct 02, 2018 2:43 pm

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Source: Veritas Prep

Last year, Andre's company gave him a year-end bonus that was between $160 and $200. This year, his year-end bonus was 200% greater than it was the previous year. Which of the following could be the value of Andre's bonus this year, rounded to the nearest dollar?

A. $275
B. $375
C. $475
D. $575
E. $675

The OA is D.

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Source: Beat The GMAT — Problem Solving | Tue Oct 02, 2018 2:43 pm

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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] » Tue Oct 02, 2018 3:56 pm

Hi All,

We're told that last year, Andre's company gave him a year-end bonus that was between $160 and $200 and this year, his year-end bonus was 200% GREATER than it was the previous year. We're asked which of the following COULD be the value of Andre's bonus this year, rounded to the nearest dollar? This question comes down to your understanding of percent increases and how specific wording impacts the math involved.

To start, here are some simple examples of the concept involved:
100% OF 100 = 100
100% GREATER than 100 = 100 + 100 = 200
200% GREATER than 100 = 100 + 200 = 300
Etc.

Using this knowledge, we can define the range of what Andre's bonus could be this year...
200% GREATER than $160 = 160 + 320 = $480
200% GREATER than $200 = 200 + 400 = $600
Thus, Andre's bonus has to be between $480 and $600. There's only one answer that fits...

Final Answer: D

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 » Wed Oct 03, 2018 4:54 pm

BTGmoderatorLU wrote:Source: Veritas Prep

Last year, Andre's company gave him a year-end bonus that was between $160 and $200. This year, his year-end bonus was 200% greater than it was the previous year. Which of the following could be the value of Andre's bonus this year, rounded to the nearest dollar?

A. $275
B. $375
C. $475
D. $575
E. $675

We are given that Andre received a bonus between $160 and $200 last year and that he received a bonus this year that was 200% greater than last year's bonus. The phrase "200% greater" means that Andre received a bonus this year that was 3 times as much as the one he received last year.

Let's determine a range for Andre's bonus this year. Had he received a bonus of 160 dollars last year, then this year he would have received a bonus of 160 x 3 = 480 dollars.

Had he received a bonus of 200 dollars last year, then this year he would have received a bonus of 200 x 3 = 600 dollars.

Thus, his bonus this year was between 480 and 600 dollars, so he could have received a bonus of 575 dollars.

Answer: D

Scott Woodbury-Stewart
Founder and CEO
[email protected]