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While Mel is on disability leave, his employer pays

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While Mel is on disability leave, his employer pays

by sachin_yadav » Wed Jul 30, 2014 6:42 am
While Mel is on disability leave, his employer pays him a monthly disability benefit equal to $1,200 plus 40 percent of the amount of his monthly salary in excess of $2,000. What is Mel's monthly salary?

(1) Mel's monthly disability benefit from his employer is $1,600
(2) Mel's monthly salary exceeds $2,500

OA is A

Please explain

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by theCodeToGMAT » Wed Jul 30, 2014 6:57 am
Pay = 1200 + 40% (S-2000)

To find: S

Statement 1:
Pay = 1600
We can put value and get the value of "S"
SUFFICIENT

Statement 2:
S > 2500
we cannot deduce anything
INSUFFICIENT

[spoiler]{A}[/spoiler]
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by GMATinsight » Wed Jul 30, 2014 7:02 am
sachin_yadav wrote:While Mel is on disability leave, his employer pays him a monthly disability benefit equal to $1,200 plus 40 percent of the amount of his monthly salary in excess of $2,000. What is Mel's monthly salary?

(1) Mel's monthly disability benefit from his employer is $1,600
(2) Mel's monthly salary exceeds $2,500

OA is A

Please explain

Regards
Sachin
Given, Benefit = $1,200 + (40/100)(x-$2,000)
Where, x is Mel's Monthly Salary

Question : x = ?

Statement 1) $1,200 + (40/100)(x-$2,000) = $1600

Solving the above Equation, we can calculate the value of x, Therefore,
SUFFICIENT

Statement 2) x > $2,500.
x become Indeterminate as there are infinite possible values of x
INSUFFICIENT

Answer: Option A
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by perwinsharma » Wed Jul 30, 2014 11:49 pm
While Mel is on disability leave, his employer pays him a monthly disability benefit equal to $1,200 plus 40 percent of the amount of his monthly salary in excess of $2,000. What is Mel's monthly salary?

(1) Mel's monthly disability benefit from his employer is $1,600
(2) Mel's monthly salary exceeds $2,500
From the question:
Monthly Disability Benefit = $1,200 + 40% of (monthly salary - 2,000) {The question says in excess of $2,000}

Considering statement (1) alone:

$1,200 + 40% of (monthly salary - 2,000) = $1,600
=> 40% of (monthly salary - 2,000) = 400
=> (40/100) * (monthly salary - 2,000) = 400
=> (monthly salary - 2,000) = 1000
=> monthly salary = 1,000 + 2,000 = 3,0000

SUFFCIENT

BCE goes out

Considering statement (2) alone:

Monthly salary > $2,500
INSUFFICIENT

The answer is (A)
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by GMATGuruNY » Thu Jul 31, 2014 2:32 am
sachin_yadav wrote:While Mel is on disability leave, his employer pays him a monthly disability benefit equal to $1,200 plus 40 percent of the amount of his monthly salary in excess of $2,000. What is Mel's monthly salary?

(1) Mel's monthly disability benefit from his employer is $1,600
(2) Mel's monthly salary exceeds $2,500
Let E = Mel's salary in excess of $2000.
Thus:
Total salary = 2000 + E.
To determine Mel's total salary, we need to know the value of E.

Mel's disability benefit = $1200 + 40% of E.
Thus, to determine the value of E, we need to know Mel's monthly disability benefit.

Question stem, rephrased:
What is Mel's monthly disability benefit?

Statement 1: Mel's monthly disability benefit from his employer is $1,600
SUFFICIENT.

Statement 2: Mel's monthly salary exceeds $2,500
INSUFFICIENT.

The correct answer is A.
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