swerve wrote: ↑

Wed May 27, 2020 1:17 pm

Last month Bill spent $6,000. How much did Bill spend on taxes last month?

1) The total amount Bill spent on taxes was 70% of the amount he spent on groceries.
2) 40% of the total amount Bill spent last month was spent on taxes and groceries.

The OA is C

Source: Economist GMAT

Let's take each statement one by one.

1) The total amount Bill spent on taxes was 70% of the amount he spent on groceries.

We do not know the amount spent on groceries. Insufficient.

2) 40% of the total amount Bill spent last month was spent on taxes and groceries.

=> Taxes + Groceries = 40% of 6,000 = $2,400. Can't get the value of taxes. Insufficient.

(1) and (2) together

We have Taxes + Groceries = $2,400 and Taxes = 70% of Groceries. With these two equations, we can get the unique value of taxes. Sufficient.

The correct answer: C

Hope this helps!

-Jay
_________________
Manhattan Review GMAT Prep

Locations: Manhattan Review Warangal | Hyderabad | GRE Prep Mumbai | Visakhapatnam GRE Coaching | and many more...

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