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Rotten GMAT trap

by logitech » Wed Nov 26, 2008 9:22 pm
In 1994, Company X recorded profits that were 10% greater than in 1993, and in 1993 the company’s profits were 20% greater than they were in 1992. What were the company’s profits in 1992?

(1) In 1994, the company’s profits were $100,000 greater than in 1993.

(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.

I will post OA later. There is great trap in this question.
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by austin » Wed Nov 26, 2008 10:19 pm
1992: Profit = P
1993: Profit = 1.2 P
1994: Profit = 1.1 (1.2P) = 1.32 P

P =?

(1) In 1994, the company’s profits were $100,000 greater than in 1993.
1.32P = 100,000 +1.2P
=> 0.12 P = 100000 => P = 833333.33 sufficient

(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.

For every $3, it earned $3.96. Same as the question (1.32*3 = 3.96)

Answer: A

Am I trapped???
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by logitech » Thu Nov 27, 2008 2:02 am
austin wrote:1992: Profit = P
1993: Profit = 1.2 P
1994: Profit = 1.1 (1.2P) = 1.32 P

P =?

(1) In 1994, the company’s profits were $100,000 greater than in 1993.
1.32P = 100,000 +1.2P
=> 0.12 P = 100000 => P = 833333.33 sufficient

(2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.

For every $3, it earned $3.96. Same as the question (1.32*3 = 3.96)

Answer: A

Am I trapped???
you are fine. Good work!
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by gmataug08 » Thu Nov 27, 2008 8:50 pm
eq 1 is suff. as we can back solve with available percentage.

eq2 is just 1 unit value and we don't have any information on number of units to answer the question.

IMO A

what is the intended GMAT Trap?
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by logitech » Thu Nov 27, 2008 11:15 pm
gmataug08 wrote:eq 1 is suff. as we can back solve with available percentage.

eq2 is just 1 unit value and we don't have any information on number of units to answer the question.

IMO A

what is the intended GMAT Trap?
2) For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.

For every $3, it earned $3.96. Same as the question (1.32*3 = 3.96)

St 2 repeats the information given in the stimulus.
LGTCH
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