Hi amogha_cs21,
We're told that Pat SAVED $600 of his earnings last month. We're asked how much Pat EARNED last month.
1) Pat spent 1/2 of his earnings last month for living expenses and saved 1/3 of the remainder.
Since we already know that Pat SAVED $600 last month, we can 'work backwards' based on the information in Fact 1 to determine how much Pat earned:
If 1/3 of X = $600, then X = ($600)(3) = $1800, so $1800 was what Pat had AFTER living expenses....
1/2 of Y = $1800, so Y = ($1800)(2) = $3600, so Pat EARNED $3600 last month.
Working forward, you can double-check this result if you like - and you'll see that it 'fits' all of the information that we've been given and answers the question.
Fact 1 is SUFFICIENT
2) Of his earnings last month, Pat paid twice as much in taxes as he saved.
The information in Fact 2 tells us that Pat TWICE as much in taxes as the $600 that we know that Pat saved. Unfortunately, there's no way to determine how much Pat actually EARNED, since neither the amount saved nor the amount paid in taxes is given a 'relationship' to the amount earned.
Fact 2 is INSUFFICIENT
Final Answer: A
GMAT assassins aren't born, they're made,
Rich
