GRE Prep Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Retired Moderator
Joined: 10 Apr 2015
Posts: 6218
Given Kudos: 136
In a company of only 20 employees, 10 employees make $80,000
[#permalink]
23 Sep 2016, 14:27
23 Sep 2016, 14:27
00:00
Question Stats:
99% (01:26) correct
0% (00:00) wrong based on 14 sessions
Hide Show timer Statistics
In a company of only 20 employees, 10 employees make $80,000/yr, 6 employees make $150,000/yr, and the 4 highest-paid employees all make the same amount. If the average annual salary for the 20 employees is $175,000/yr, then what is the annual salary of each highest-paid employee?
(A) $250,000
(B) $300,000
(C) $350,000
(D) $400,000
(E) $450,000
Source: Magoosh
(A) $250,000
(B) $300,000
(C) $350,000
(D) $400,000
(E) $450,000
Source: Magoosh
Retired Moderator
Joined: 10 Apr 2015
Posts: 6218
Given Kudos: 136
Re: In a company of only 20 employees, 10 employees make $80,000
[#permalink]
23 Sep 2016, 14:28
23 Sep 2016, 14:28
GreenlightTestPrep wrote:
In a company of only 20 employees, 10 employees make $80,000/yr, 6 employees make $150,000/yr, and the 4 highest-paid employees all make the same amount. If the average annual salary for the 20 employees is $175,000/yr, then what is the annual salary of each highest-paid employee?
(A) $250,000
(B) $300,000
(C) $350,000
(D) $400,000
(E) $450,000
Source: Magoosh
(A) $250,000
(B) $300,000
(C) $350,000
(D) $400,000
(E) $450,000
Source: Magoosh
Weighted average of groups combined = (group A proportion)(group A average) + (group B proportion)(group B average) + (group C proportion)(group C average) + etc
NOTE: To make things easier, let's drop the thousands and write $80 instead of $80,000
Let x = the annual salary of each highest-paid employee
Plug values into the formula to get: 175 = (10/20)(80) + (6/20)(150) + (4/10)(x)
Simplify: 175 = 40 + 45 + x/5
Simplify: 90 = x/5
Solve: x = 450
So, the annual salary of each highest-paid employee is $450,000
Answer:
Show: ::
E
RELATED VIDEO
Moderator
Joined: 02 Jan 2020
Status:GRE Quant Tutor
Posts: 1111
Given Kudos: 9
Location: India
Concentration: General Management
Schools: XLRI Jamshedpur, India - Class of 2014
GMAT 1: 700 Q51 V31
GPA: 2.8
WE:Engineering (Computer Software)
Re: In a company of only 20 employees, 10 employees make $80,000
[#permalink]
30 Sep 2022, 23:28
30 Sep 2022, 23:28
Given that In a company of only 20 employees, 10 employees make $80,000/yr, 6 employees make $150,000/yr, and the 4 highest-paid employees all make the same amount. If the average annual salary for the 20 employees is $175,000/yr, then what is the annual salary of each highest-paid employee
Theory : Weighted Average = \(\frac{((Weight1∗Value1) + (Weight2∗Value2)…+ (WeightN∗ValueN))}{(Weight1 + Weight2 + ... WeightN)}\)
Let average salary of 4 highest employees be $ x
=> Average Annual Salary of 20 employees = \(\frac{10*80,000 + 6*150,000 + 4*x }{ 20}\)
=> 175,000 * 20 = 800,000 + 900,000 + 4x
=> 3,500,000 = 1,700,000 + 4x
=> 4x = 3,500,000 - 1,700,000 = 1,800,000
=> x = \(\frac{1,800,000}{4}\) = 450,000
So, Answer will be E
Hope it helps!
Watch the following video to Learn the Basics of Statistics
Theory : Weighted Average = \(\frac{((Weight1∗Value1) + (Weight2∗Value2)…+ (WeightN∗ValueN))}{(Weight1 + Weight2 + ... WeightN)}\)
Let average salary of 4 highest employees be $ x
=> Average Annual Salary of 20 employees = \(\frac{10*80,000 + 6*150,000 + 4*x }{ 20}\)
=> 175,000 * 20 = 800,000 + 900,000 + 4x
=> 3,500,000 = 1,700,000 + 4x
=> 4x = 3,500,000 - 1,700,000 = 1,800,000
=> x = \(\frac{1,800,000}{4}\) = 450,000
So, Answer will be E
Hope it helps!
Watch the following video to Learn the Basics of Statistics
