Richard receives an increment in his salary....

Expert replies

BTGmoderatorLU: Moderator; Posts: 2558; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Sat Dec 16, 2017 2:31 pm

Richard receives an increment in his salary. His salary presently forms 30% of the total income of his family. Before the increment his salary used to form 20% of the total income of his family. By how many percentage points did the salary of Richard as a percentage of his family's total income increase?

A) 14(2/7)
B) 16(2/3)
C) 10
D) 8
E) 13(3/7)

The OA is C.

I'm really confused with this PS question. Please, can any expert assist me with it? Thanks in advanced.

Like this post

Source: Beat The GMAT — Problem Solving | Sat Dec 16, 2017 2:31 pm

EconomistGMATTutor: GMAT Instructor; Posts: 555; Joined: Wed Oct 04, 2017 4:18 pmFollowed by: 12 members; Thanked: 180 times

by EconomistGMATTutor » Sun Dec 17, 2017 7:45 am

Richard receives an increment in his salary. His salary presently forms 30% of the total income of his family. Before the increment his salary used to form 20% of the total income of his family. By how many percentage points did the salary of Richard as a percentage of his family's total income increase?

A) 14(2/7)
B) 16(2/3)
C) 10
D) 8
E) 13(3/7)

The OA is C.

I'm really confused with this PS question. Please, can any expert assist me with it? Thanks in advanced.

Hi Luandato,
Let's take a look at your question.

Let 'x' be the total family income then,
Before the increment Richard's salary = (20%)(x) = 0.2 x
After increment Richard's salary = (30%)(x) = 0.3 x

The percentage points of the salary of Richard as a percentage of his family's total income increase can be calculated as,
$$=\frac{\left(0.3x-0.2x\right)}{x}\times100\%$$
$$=\frac{0.1x}{x}\times100\%$$
$$=0.1\times100\%=10\%$$

It can also be calculated as 30%-20% = 10%

Therefore, Option C is correct,

Hope it helps.
I am available if you'd like any follow up.

GMAT Prep From The Economist
We offer 70+ point score improvement money back guarantee.
Our average student improves 98 points.

Like this post

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8157; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Sat Sep 21, 2019 11:19 am

BTGmoderatorLU wrote:Richard receives an increment in his salary. His salary presently forms 30% of the total income of his family. Before the increment his salary used to form 20% of the total income of his family. By how many percentage points did the salary of Richard as a percentage of his family's total income increase?

A) 14(2/7)
B) 16(2/3)
C) 10
D) 8
E) 13(3/7)

Richard's salary as a percentage of his family's total income increased by 30 - 20 = 10 percentage points.

Answer: C

Scott Woodbury-Stewart
Founder and CEO
[email protected]

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review