MasteringGMAT wrote:
In 1998 Jean's annual salary was greater than Kevin's annual salary. In each of 1999 and 2000, Jean's annual salary was 3 percent greater in that year than in the preceding year and Kevin's annual salary was also 3 percent greater in that year than in the preceding year. By what percent did the difference between Jean's and Kevin's annual salaries increase from 1998 to 2000 ?
A. 3%
B. 3.03%
C. 6%
D. 6.09%
E. 9.03%
difference_1998 = j - k
Since “3 percent greater” corresponds to a factor of 1.03, we have:
difference_1999 = j(1.03) – k(1.03)
difference_2000 = j(1.03)^2 – k(1.03)^2 = (j – k)(1.03)^2
So,
difference_2000 = (1.0609)(j – k)
Since a factor of 1.0609 corresponds to a 6.09% increase, the difference in question increased by 6.09%.
Answer: D
Statistics : Posted by JeffTargetTestPrep • on 02 Jul 2023, 07:28 • Replies 2 • Views 163
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