Problem Solving

Hi All,

We're told that last year, Andre's company gave him a year-end bonus that was between $160 and $200 and this year, his year-end bonus was 200% GREATER than it was the previous year. We're asked which of the following COULD be the value of Andre's bonus this year, rounded to the nearest dollar? This question comes down to your understanding of percent increases and how specific wording impacts the math involved.

To start, here are some simple examples of the concept involved:
100% OF 100 = 100
100% GREATER than 100 = 100 + 100 = 200
200% GREATER than 100 = 100 + 200 = 300
Etc.

Using this knowledge, we can define the range of what Andre's bonus could be this year...
200% GREATER than $160 = 160 + 320 = $480
200% GREATER than $200 = 200 + 400 = $600
Thus, Andre's bonus has to be between $480 and $600. There's only one answer that fits...

Final Answer: D

GMAT assassins aren't born, they're made,
Rich

BTGmoderatorLU wrote:Source: Veritas Prep

Last year, Andre's company gave him a year-end bonus that was between $160 and $200. This year, his year-end bonus was 200% greater than it was the previous year. Which of the following could be the value of Andre's bonus this year, rounded to the nearest dollar?

A. $275
B. $375
C. $475
D. $575
E. $675

We are given that Andre received a bonus between $160 and $200 last year and that he received a bonus this year that was 200% greater than last year's bonus. The phrase "200% greater" means that Andre received a bonus this year that was 3 times as much as the one he received last year.

Let's determine a range for Andre's bonus this year. Had he received a bonus of 160 dollars last year, then this year he would have received a bonus of 160 x 3 = 480 dollars.

Had he received a bonus of 200 dollars last year, then this year he would have received a bonus of 200 x 3 = 600 dollars.

Thus, his bonus this year was between 480 and 600 dollars, so he could have received a bonus of 575 dollars.

Answer: D