OG percentage problem

This topic has expert replies
Master | Next Rank: 500 Posts
Posts: 131
Joined: Fri Jun 18, 2010 10:19 am
Location: New York, NY
Thanked: 10 times

OG percentage problem

by aleph777 » Mon Jul 19, 2010 5:52 pm
Here's a question from the OG 12 that I was able to solve, albeit inefficiently. And the OG solution doesn't make sense to me, so I'd really appreciate anyone's shortcut tips!

Pg 259, Quest 220:

A part-time employee whose hourly wage was increased by 25% decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?

A 12.5%
B 20%
C 25%
D 50%
E 75%

I plugged in an imaginary wage and work week and solved from there. If the employee was previously paid $10/hour and worked 40 hours a week, he made $400 a week. His raise set him at $12.50/hour, and if he wanted to reduce his hours and earn the same amount, then 12.5x = 400 and x = 8. The final step is to solve for the percentage 2/10, which is 20%.

The OG solves algebraically, though:

1.25wH = wh

Both sides divided by w for:

1.25H = h

But then it says:

H= 0.8h

Seems like a much quicker formula, but where does the 0.8 come from?

Thanks!

Matthew
Source: — Problem Solving |

User avatar
Master | Next Rank: 500 Posts
Posts: 294
Joined: Wed May 05, 2010 4:01 am
Location: india
Thanked: 57 times

by amising6 » Mon Jul 19, 2010 6:14 pm
A part-time employee whose hourly wage was increased by 25% decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?
income=number of hours * hourly wage
number of hours=h
hourly wage=w
income=h*w


hourly wage was increased by 25%
new hourly wage h=h+25% of h=1.25 h
let new wage be w1
so income=1.25h1*w1
now income is remaining unchanged
so we can say h*w= 1.25h*w1
w=1.25 w1
w/1.25=w1
0.8w=w1
thus you can see how they are getting 0.8
now % reduction w-0.8w/w*100=20%
Ideation without execution is delusion

User avatar
Master | Next Rank: 500 Posts
Posts: 214
Joined: Mon Mar 29, 2010 1:46 pm
Location: Houston, TX
Thanked: 37 times
GMAT Score:700

by sk818020 » Mon Jul 19, 2010 6:29 pm
From 1.25H = h;

divide both sides by 1.25;

H=(1/1.25)*h

1/1.25=4/5 [multiply (1/1.25)(4/4)]

4/5=.8

So H=(4/5)h, or H=.8h, or 1.25H=h, they're all the same.

Hope this helps.

Jared

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Mon Jul 19, 2010 8:08 pm
aleph777 wrote:Here's a question from the OG 12 that I was able to solve, albeit inefficiently. And the OG solution doesn't make sense to me, so I'd really appreciate anyone's shortcut tips!

Pg 259, Quest 220:

A part-time employee whose hourly wage was increased by 25% decided to reduce the number of hours worked per week so that the employee's total weekly income would remain unchanged. By what percent should the number of hours worked be reduced?

A 12.5%
B 20%
C 25%
D 50%
E 75%

I plugged in an imaginary wage and work week and solved from there. If the employee was previously paid $10/hour and worked 40 hours a week, he made $400 a week. His raise set him at $12.50/hour, and if he wanted to reduce his hours and earn the same amount, then 12.5x = 400 and x = 8. The final step is to solve for the percentage 2/10, which is 20%.

The OG solves algebraically, though:

1.25wH = wh

Both sides divided by w for:

1.25H = h

But then it says:

H= 0.8h

Seems like a much quicker formula, but where does the 0.8 come from?

Thanks!

Matthew
When you plug in, use numbers that will make the math easy:

Since his hourly rate is going to increase by 25%, we should plug in an hourly rate that is divisible by 4. Rate = $4/hour.
Since the question is asking by what percent the numbers of hours must decrease, we should plug in hours = 100.

pay is 4*100=400
new rate is $5/hour
to make $400, needs to work 400/5=80 hours
100 hours to 80 hours is a 20% decrease

Much cleaner and quicker. The correct answer is B.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3