In 2008, Zinah earned 14% more than in 2007, and in 2009 Zinah earned 4% more than in 2008. If...
GMAT Problem-Solving and Data Analysis : (PS_DA) Questions
In \(\mathrm{2008}\), Zinah earned \(\mathrm{14\%}\) more than in \(\mathrm{2007}\), and in \(\mathrm{2009}\) Zinah earned \(\mathrm{4\%}\) more than in \(\mathrm{2008}\). If Zinah earned \(\mathrm{y}\) times as much in \(\mathrm{2009}\) as in \(\mathrm{2007}\), what is the value of \(\mathrm{y}\)?
\(\mathrm{0.5600}\)
\(\mathrm{1.0056}\)
\(\mathrm{1.1800}\)
\(\mathrm{1.1856}\)
1. TRANSLATE the problem information
- Given information:
- 2008 earnings: 14% more than 2007
- 2009 earnings: 4% more than 2008
- Need to find: \(\mathrm{y}\) where \(\mathrm{2009 = y \times 2007}\)
- What this tells us: We need to track how earnings change through each year, then compare 2009 to the original 2007 amount.
2. TRANSLATE percentage increases into multipliers
- 14% increase means \(\mathrm{new\ amount = 1.14 \times original\ amount}\)
- 4% increase means \(\mathrm{new\ amount = 1.04 \times original\ amount}\)
3. Set up variables and equations
- Let \(\mathrm{A}\) = Zinah's 2007 earnings
- 2008 earnings = \(\mathrm{1.14A}\) (14% more than 2007)
- 2009 earnings = \(\mathrm{1.04 \times (2008\ earnings) = 1.04 \times 1.14A}\)
4. SIMPLIFY to find the relationship
\(\mathrm{2009\ earnings = 1.04 \times 1.14A}\)
Calculate: \(\mathrm{1.04 \times 1.14 = 1.1856}\) (use calculator)
So \(\mathrm{2009\ earnings = 1.1856A}\)
5. Find y
Since \(\mathrm{2009 = y \times 2007}\): \(\mathrm{1.1856A = y \times A}\)
Therefore: \(\mathrm{y = 1.1856}\)
Answer: D. 1.1856
Why Students Usually Falter on This Problem
Most Common Error Path:
Weak TRANSLATE skill: Students incorrectly think they can simply add the percentages together: \(\mathrm{14\% + 4\% = 18\%}\), so \(\mathrm{y = 1.18}\).
This reasoning misses that the 4% increase applies to the already-increased 2008 amount, not the original 2007 amount. The increases compound rather than simply add.
This leads them to select Choice C (1.1800).
Second Most Common Error:
Poor SIMPLIFY execution: Students correctly set up the problem as \(\mathrm{1.14 \times 1.04}\) but make calculation errors with the decimal multiplication.
Common mistakes include getting 1.0056 (possibly from \(\mathrm{1.14 \times 0.04}\)) or other decimal errors that don't result in the correct product.
This may lead them to select Choice B (1.0056) or causes confusion and guessing.
The Bottom Line:
This problem requires understanding that percentage increases compound (multiply) rather than simply add together, combined with careful decimal arithmetic to avoid calculation errors.
\(\mathrm{0.5600}\)
\(\mathrm{1.0056}\)
\(\mathrm{1.1800}\)
\(\mathrm{1.1856}\)