Guy’s net income equals his gross income minus his deductions. By what percent did Guy’s net income change on January 1, 1989, when both his gross income and his deductions increased?
(1) Guy’s gross income increased by 4 percent on January 1, 1989.
(2) Guy’s deductions increased by 15 percent on January 1, 1989.
OA is: E
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Percent increase in net income
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Stem 1: NS. We are only given the % change in gross income.
Stem 2: NS. We are only given the % change in deductions.
Combined: NS. Both stems are still insufficient as we don't know the ratio of deductions to gross income.
Therefore, the answer is E.
Stem 2: NS. We are only given the % change in deductions.
Combined: NS. Both stems are still insufficient as we don't know the ratio of deductions to gross income.
Therefore, the answer is E.
