If Beth spent $400 of her earnings last month on rent, how

[BTGmoderatorDC]

If Beth spent $400 of her earnings last month on rent, how much did Beth earn last month?

(1) Beth saved 1/3 of her earnings last month and spent half of the remainder on rent.
(2) Beth earned twice as much this month as last month.

OA A

Source: Princeton Review

[Jay@ManhattanReview]

If Beth spent $400 of her earnings last month on rent, how much did Beth earn last month?

(1) Beth saved 1/3 of her earnings last month and spent half of the remainder on rent.
(2) Beth earned twice as much this month as last month.

OA A

Source: Princeton Review

Let's take each statement one by one.

(1) Beth saved 1/3 of her earnings last month and spent half of the remainder on rent.

Given Beth saved 1/3 of her earnings last month, she spent 1 - 1/3 = 2/3 of her earnings last month.

Part spent on rent = 1/2 of 2/3 = 1/3 of her earnings last month on rent

=> 1/3 of her earnings last month on rent = 400

Beth's earnings last month on rent = 3*400 = $1,200. Sufficient

(2) Beth earned twice as much this month as last month.

No relationship of earning with rent is given; we can't get the answer. insufficient.

The correct answer: A

Hope this helps!

-Jay
_________________
Manhattan Review GMAT Prep

Locations: GRE Manhattan | ACT Prep Courses San Francisco | IELTS Prep Courses Boston | Seattle IELTS Tutoring | and many more...

Schedule your free consultation with an experienced GMAT Prep Advisor! Click here.