BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Rule of 70 question

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Newbie | Next Rank: 10 Posts
Posts: 6
Joined: Sat Feb 18, 2012 1:36 am
Followed by:1 members

Rule of 70 question

by rajashree89 » Tue Apr 17, 2012 6:50 pm
A certain company retirement plan has a "rule of 70" provision that allows an employee to retire when the employee's age plus years of employment with the company total at least 70. In what year could a female employee hired in 1986 on her 32nd birthday first be eligible to retire under this provision?
a. 2003
b. 2004
c. 2005
d. 2006
e. 2007
Top
Source: — Problem Solving |
User avatar
GMAT Instructor
Posts: 3225
Joined: Tue Jan 08, 2008 2:40 pm
Location: Toronto
Thanked: 1710 times
Followed by:614 members
GMAT Score:800

by Stuart@KaplanGMAT » Tue Apr 17, 2012 7:38 pm
rajashree89 wrote:A certain company retirement plan has a "rule of 70" provision that allows an employee to retire when the employee's age plus years of employment with the company total at least 70. In what year could a female employee hired in 1986 on her 32nd birthday first be eligible to retire under this provision?
a. 2003
b. 2004
c. 2005
d. 2006
e. 2007
Hi!

Since the employee is 32 at the start of her employment, she needs to accumulate 70-32 = 38 "points" to retire.

Each year she works she gets 2 points - 1 for working and 1 for getting a year older. So, to determine how many years she needs to work, we simply divide 38 by 2 to get 19.

1986 + 19 years = 2005 as her year of retirement... choose C!
Image

Stuart Kovinsky | Kaplan GMAT Faculty | Toronto

Kaplan Exclusive: The Official Test Day Experience | Ready to Take a Free Practice Test? | Kaplan/Beat the GMAT Member Discount
BTG100 for $100 off a full course
Top

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pm
Location: Milpitas, CA
Thanked: 1854 times
Followed by:523 members
GMAT Score:770

by Anurag@Gurome » Tue Apr 17, 2012 8:11 pm
rajashree89 wrote:A certain company retirement plan has a "rule of 70" provision that allows an employee to retire when the employee's age plus years of employment with the company total at least 70. In what year could a female employee hired in 1986 on her 32nd birthday first be eligible to retire under this provision?
a. 2003
b. 2004
c. 2005
d. 2006
e. 2007
The female employee must gain at least 70 points.
Now she has 32 and every year gives her two more points: one for age and one for additional year of employment, so 32 + 2 * (number of years) = 70
(Number of years) = 19
So, 1986 + 19 = 2005

The correct answer is C.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/
Top
User avatar
Master | Next Rank: 500 Posts
Posts: 385
Joined: Mon Apr 16, 2012 8:40 am
Location: Pune, India
Thanked: 186 times
Followed by:29 members

by aneesh.kg » Tue Apr 17, 2012 9:04 pm
We will try to solve this question using inequalities here:

If Age is A, and the number of years of employment is Y, then following is the condition for retirement:
A + Y >= 70

If her 32nd birthday is in 1986, that means she was born in 1954, and if X is the current year
A = X - 1954,
and Y = X - 1986

(X - 1954) + (X - 1986) >= 70
X >= 1970 + 35
X >= 2005

So, she will be first eligible for retirement in 2005.

(C) is the answer
Aneesh Bangia
GMAT Math Coach
[email protected]

GMATPad:
Facebook Page: https://www.facebook.com/GMATPad
Top
Post new topic Post Reply
• Page 1 of 1