Company R's annual profit has increased by a constant amount each calendar year since 1985...

[BTGmoderatorLU]

Source: GMAT Paper Tests

Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991?

1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.
2) Company R's annual profit has increased by $7,500 each year since 1985.

The OA is A

[Jay@ManhattanReview]

Source: GMAT Paper Tests

Company R's annual profit has increased by a constant amount each calendar year since 1985. What was Company R's annual profit in 1991?

1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.
2) Company R's annual profit has increased by $7,500 each year since 1985.

The OA is A

Let's take each statement one by one.

1) In 1985 Company R's annual profit was $212,000; in 1989 Company R's annual profit was $242,000.

=> In 4 years, the profit increased by (242k – 212k)/4 = $15k per annum

Thus, profit in 1991 = 242k + 2*15k = $272k. Sufficient

2) Company R's annual profit has increased by $7,500 each year since 1985.

We do not know the profit of any of the years, so we cannot get the answer. Insufficient.

The correct answer: A

Hope this helps!

-Jay
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