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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote Ted and Barney work for the same company but earn different This topic has 1 expert reply and 0 member replies Top Member Ted and Barney work for the same company but earn different Timer 00:00 Your Answer A B C D E Global Stats Difficult Ted and Barney work for the same company but earn different incomes and have different expenditures. Who saves a greater portion of their income? (1) The sum of Tedâ€™s income and Barneyâ€™s expenditure is greater than the sum of Barneyâ€™s income and Tedâ€™s expenditure. (2) Tedâ€™s income is 20% lesser than Barneyâ€™s income. OA C Source: e-GMAT GMAT/MBA Expert GMAT Instructor Joined 22 Aug 2016 Posted: 1699 messages Followed by: 28 members Upvotes: 470 BTGmoderatorDC wrote: Ted and Barney work for the same company but earn different incomes and have different expenditures. Who saves a greater portion of their income? (1) The sum of Tedâ€™s income and Barneyâ€™s expenditure is greater than the sum of Barneyâ€™s income and Tedâ€™s expenditure. (2) Tedâ€™s income is 20% lesser than Barneyâ€™s income. OA C Source: e-GMAT Say the incomes of Ted and Barney are x, and y, respectively; and the expenditures of Ted and Barney are p, and q, respectively. Thus, the savings of Ted and Barney would be (x - y), and (p - q), respectively. The portion of savings of Ted and Barney are (x - y)/x = 1 - y/x, and (p - q)/p = 1 - q/p, respectively. We have to determine which of the two (1 - y/x) and (1 - q/p) is greater. (1) The sum of Tedâ€™s income and Barneyâ€™s expenditure is greater than the sum of Barneyâ€™s income and Tedâ€™s expenditure. x + q > p + y => x - y > p - q. (x - y)/x > (p - q)/x 1 - y/x > (p - q)/x Can't determine whether (1 - y/x) > (1 - q/p). Insufficient. (2) Tedâ€™s income is 20% lesser than Barneyâ€™s income. => x = 80% of p = 0.8p No information about the expenditures. Insufficient. (1) and (2) together From (1), we have 1 - y/x > (p - q)/x => 1 - y/x > (p - q)/(0.8p); replacing the value of x 1 - y/x > p/0.8p - q/0.8p 1 - y/x > 1.25 - 1.25q/p 1 - y/x > 1.25(1 - q/p) => 1 - y/x > 1 - q/p. Sufficient. The correct answer: C Hope this helps! -Jay _________________ Manhattan Review Locations: Manhattan Review Bangalore | GMAT Prep Chennai | GRE Prep Himayatnagar | Hyderabad GRE Coaching | and many more... Schedule your free consultation with an experienced GMAT Prep Advisor! Click here. • Magoosh Study with Magoosh GMAT prep Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Practice Test & Review How would you score if you took the GMAT Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • 5-Day Free Trial 5-day free, full-access trial TTP Quant Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Award-winning private GMAT tutoring Register now and save up to$200

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