BTGmoderatorDC wrote:In each of the last five years, Company K donated p percent of its annual profits to a certain scholarship fund. Did Company K donate more than $10,000 to the scholarship fund last year?

(1) Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund
(2) Last year, Company K had annual profits of $2.5 million

OA C

Source: Official Guide

Let's take each statement one by one.

We have to determine whether p% of last year's annual profit > 100,000.

(1) Two years ago, Company K had annual profits of $3 million and donated $15,000 to the scholarship fund.

Certainly insufficient since the data is for the last year. Insufficient.

(2) Last year, Company K had annual profits of $2.5 million.

No information about p. Insufficient.

(1) and (2) together

From (1), we have p = [15,000 / 3,000,000]*100% = 1/2%

From (2), we have the donation, given last year = p% of 2.5M = 1/2% of 2.5M = $12,500 > $10,000. The answer is Yes, Sufficient.

The correct answer: C

Hope this helps!

-Jay
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