Jack and Mark (GMAT Prep 1)

[alex.gellatly]

Jack and Mark both received hourly wage increases of 6 percent. After the wage increases, Jack's hourly wage was how many dollars per hour more than Mark's?
1. Before the wage increases, Jack's hourly wage was $5.00 per hour more than Mark's.
2. Before the increases, the ratio of Jack's hourly wage to Mark's hourly wage was 4 to 3.

Thanks

[Anurag@Gurome]

Jack and Mark both received hourly wage increases of 6 percent. After the wage increases, Jack's hourly wage was how many dollars per hour more than Mark's?
1. Before the wage increases, Jack's hourly wage was $5.00 per hour more than Mark's.
2. Before the increases, the ratio of Jack's hourly wage to Mark's hourly wage was 4 to 3.

Let us assume that before the increase, Jack and Mark's hourly wages were J and M respectively, in dollars.

Hence, after the increase their hourly wages are 1.06 times the previous wages.
Hence, we need to determine (1.06)*(J - M)

In other words, we need to determine the difference between J and M.

Hence, statement 1 is clearly sufficient whereas statement 2 is not.

The correct answer is A.