Live GMAT classes with Target Test Prep start Nov 21 and Nov 22. First class free.

See classes
Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

Newsweek Readers’ Choice Awards 2026 winner: Target Test Prep, #1 Test Prep

Target Test Prep was voted #1 Best Test Prep in the 2026 Newsweek Readers’ Choice™ Awards.

★★★★★5.0563 reviews
GMATLiveTeachStarts Nov 22
Josh Braslow, Target Test Prep GMAT expert
LIVE ONLINE CLASSES

Get Ready for GMAT Test Day Faster with Live Online Classes

with Josh Braslow, 20+ years in test prep

Nov 22 · Josh Braslow
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes + 6 months of TTP OnDemand
  • Attend the first class for free
  • Every class is recorded, so you never fall behind
View classes & enroll
Limited seats availableTarget Test Prep
EALiveTeachOnDemandStart anytime
EXECUTIVE ASSESSMENT

Target Test Prep EA OnDemand

Self-paced EA prep. Study on your schedule.

EXECUTIVE ASSESSMENT

with

165+ EA score guarantee
$05-day trial no automatic billing
Schedule
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll Start free 5-day trial
Limited cohort · enrollment openTrial includes full course accessTarget Test Prep
GMATOnDemandStart anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 563 reviewsTarget Test Prep

GMATPrep - Take Home pay problem

Expert replies
Post new topic Post Reply
Subscribe topic
Previous Topic Next Topic
Source: — Problem Solving |
Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Sat Jul 25, 2015 8:43 amFollowed by: 1 member

by shannonalex » Sat Jul 25, 2015 9:23 am
I spent some more time searching and found the solution https://www.beatthegmat.com/word-problems-t270244.html
Top
Join the discussion

GMAT/MBA Expert

User avatar
Elite Legendary Member
Posts: 10391
Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members
Location: Palo Alto, CA
Thanked: 2867 times
GMAT Score:800

by [email protected] » Sat Jul 25, 2015 9:43 am
Hi shannonalex,

We can solve this question with some algebra, but you have to be detailed with how you assign variables.

If...
X = the amount of money Alice EARNED per month
Y = the amount of money Alice SAVED per month
Y/X = the FRACTION of her paycheck she saved per month
then...
12Y = the amount of money Alice saved in ONE YEAR

Since the TOTAL amount saved = 3 times (what she DIDN'T save), we have this...
12Y = 3(X - Y)

Now, we can simplify:
12Y = 3X - 3Y
15Y = 3X
5Y = X
Y/X = 1/5

Final Answer: D

GMAT assassins aren't born, they're made,
Rich
Contact Rich at [email protected]
Image
Top
Join the discussion

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16206
Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members
Location: Vancouver, BC
Thanked: 5254 times
GMAT Score:770

by Brent@GMATPrepNow » Sat Jul 25, 2015 10:19 am
Alice's take-home pay last year was the same each month, and she saved the same fraction of her take-home pay each month. The total amount of money that she saved at the end of the year was 3 times the amount of her take-home pay that she didn't save. If all money she saved lasr year was from her take-home pay, what fraction of her pay did she save each month?

a)1/2
b)1/3
c)1/4
d)1/5
e)1/6
Let M = Alice's monthly take home pay
Let f = the fraction we'll use to calculate monthly savings
The means that fM = the amount of $ Alice saves each month.
And this means that her annual savings = 12fM

Important: If f = the fraction used to calculate monthly savings, then 1-f = the fraction used to calculate amount not saved
The means that (1-f)M = the amount of $ Alice does not save each month.

Now we're ready to write an equation.

The total amount of money that she had saved at the end of the year was 3 times the amount of that portion of her monthly take home pay that she did not save.
We get: 12fM = 3(1-f)M
Now solve for f
Expand to get: 12fM = 3M - 3fM
Simplify: 15fM = 3M
Divide both sides by 15M to get: f = 3M/15M = [spoiler]1/5 = D[/spoiler]

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Join the discussion
User avatar
Legendary Member
Posts: 979
Joined: Tue Apr 14, 2009 1:38 amFollowed by: 12 members
Location: Hyderabad, India
Thanked: 49 times
GMAT Score:700

by bubbliiiiiiii » Sun Jul 26, 2015 4:03 am
Let Alice's take home pay per month be 100 and amount she saved per month be x => Amount she did not save per month is 100-x.

Set up equation with given facts:

Annual savings = 3 times annual expenditure

12x=3(100-x)

Solve for x => x=20

Thus, D.
Regards,

Pranay
Top
Join the discussion
User avatar
Master | Next Rank: 500 Posts
Posts: 359
Joined: Wed Mar 11, 2009 4:37 amFollowed by: 2 members
Location: Kolkata, India
Thanked: 50 times

by Abhishek009 » Mon Jul 27, 2015 10:12 am
I solved the problem by plugging in some values and it worked well , here is my approach...

Salary not saved by alice is $10 per month

Salary not saved by alice after 1year is $120

Salary saved after 1 year is 3*$10 => $30

Total salary of alice = Salary not saved (After 1 year) + Salary saved by alice (After 1 year)

Total Salary = $150 (120 + 30)

Fraction of Take home pay saved each month is = Salary saved after 1 year / Total salary of alice after 1 year

Fraction of Take home pay saved each month is = 30/150 =>1/5
Abhishek
Top
Join the discussion
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Mon Jul 27, 2015 10:28 am
Alice's take-home pay last year was the same each month, and she saved the same fraction of her take-home pay each month. The total amount of money that she saved at the end of the year was 3 times the amount of her take-home pay that she didn't save. If all money she saved lasr year was from her take-home pay, what fraction of her pay did she save each month?

a)1/2
b)1/3
c)1/4
d)1/5
e)1/6
Let the amount saved each month = $1.
Total saved for the entire year = 12*1 = $12.
Since the total saved for the entire year -- $12 -- is 3 times the total not saved each month, the total not saved each month = 12/3 = $4.
Thus, the total monthly pay = (total saved each month) + (total not saved each month) = 1+4 = $5.
Resulting fraction:
(total monthly savings)/(total monthly pay) = 1/5.

The correct answer is D.
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
Top
Join the discussion
Legendary Member
Posts: 518
Joined: Tue May 12, 2015 8:25 pm
Thanked: 10 times

by nikhilgmat31 » Wed Jul 29, 2015 12:08 am
statement is little ambiguous
Is it 3 times the monthly expenditure or annual expenditure

considering monthly expenditure

Monthly Take home Pay = P
Monthly Saving = S

Annual saving = 12 S
Annual Pay = 12 P

12S = 3 ( P - S)
15S = 3P
S = 1/5 P

Her saving is 1/5 of Pay.


Another ambiguous way of solving - considering 3 times yearly expenditure

Monthly Take home Pay = P
Monthly Saving = S

Annual saving = 12 S
Annual Pay = 12 P


12S = 3 ( 12P - 12S)
48 S = 36 P
S = 3/4 P

which is not given as option.
Top
Join the discussion