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.
OA is A but can someone please explain statement 2? Please look at my rephrasing of the target question because that's how i prefer to set up questions like this
I did it like this..
..
..
..
1992 1993 1994
p p(1+20/100) p(1+20/100)(1+10/100)
Percent DS. can someone show me where my logic is wrong
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You're overcomplicating the problem.hutch27 wrote: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.
OA is A but can someone please explain statement 2? Please look at my rephrasing of the target question because that's how i prefer to set up questions like this
I did it like this..
..
..
..
1992 1993 1994
p p(1+20/100) p(1+20/100)(1+10/100)
The question stem simply gives the RATIO of the three years.
Let 1992 = 100.
Since 1993 is 20% greater than 1992, 1993 = 100 + .2(100) = 120.
Since 1994 is 10% greater than 1993, 1994 = 120 + .1(120) = 132.
Thus:
1994 : 1993 : 1992 = 132 : 120 : 100.
Given this ratio, if we know the profit in any of the 3 years -- or the DIFFERENCE between any two years -- we can determine the profit in EACH of the 3 years (and thus the profit in 1992).
Statement 1: In 1994, the company's profits were $100,000 greater than in 1993.
SUFFICIENT.
Statement 2: For every $3.00 in profits earned in 1992, Company X earned $3.96 in 1994.
In other words:
1994 : 1992 = 396 : 300 = 132 : 100.
This statement only confirms the ratio given in the question stem.
INSUFFICIENT.
The correct answer is A.
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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