In the first year of a couples marriage, the wifes earnings were 40 percent of the combined earnings of the couple. The wife invested 40 percent of her earnings at an annual return of 5 percent and the husband invested 30 percent of his earnings at an annual return of 10 percent. In the second year of their marriage, the combined earnings of the couple increased by 10 percent and the wifes earnings were five-sixths of her husbands earnings. The wife invested 48 percent of her earnings and the husband invested 50 percent of his earnings in their respective investment instruments of the previous year. If the couple made no other investments and took out the interest earned in the first year at the beginning of the second year, by approximately what percent was the interest earned by the couple in the second year greater than the interest earned by the couple in the first year of their marriage? The interest income from the couples investments is not considered in their earnings.a)30%b)40%c)50%d)60%e)70%Correct answer is option 'D'. Can you explain this answer?

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In the first year of a couple's marriage, the wife’s earnings were 40 percent of the combined earnings of the couple. The wife invested 40 percent of her earnings at an annual return of 5 percent and the husband invested 30 percent of his earnings at an annual return of 10 percent. In the second year of their marriage, the combined earnings of the couple increased by 10 percent and the wife’s earnings were five-sixths of her husband’s earnings. The wife invested 48 percent of her earnings and the husband invested 50 percent of his earnings in their respective investment instruments of the previous year. If the couple made no other investments and took out the interest earned in the first year at the beginning of the second year, by approximately what percent was the interest earned by the couple in the second year greater than the interest earned by the couple in the first year of their marriage? The interest income from the couple’s investments is not considered in their earnings.

a)
30%
b)
40%
c)
50%
d)
60%
e)
70%

Correct answer is option 'D'. Can you explain this answer?

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In the first year of a couple's marriage, the wife’s earning...

Given:

Let the combined earnings of the couple in the 1 year be t.
So, the given information can be tabulated as follows :

To Find: Approximate percentage by which the 2^nd year interest is greater than the 1^st year interest

Approach:

- So, to answer the question, we need to find the (combined) 1 year interest and the (combined) 2^nd year interest
For the 1^st year, we know the savings principal, interest rate and time for both the wife’s investment and the husband’s investment. Therefore, we can easily find the interest earned by wife and by the husband. And, by adding these 2 interests, we’ll get the combined 1^st year interest. The same process can be followed for the 2^nd year as well. We have all the required information points.

Working out:

Calculating Year 2 Combined Interest

The actual value will be slightly less than 64% since the denominator 26 is greater than the denominator used for estimation. Looking at the answer choices, we see that the closest answer choice is 60%.

So, correct answer is Option D

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In the first year of a couple's marriage, the wife’s earnings were 40 percent of the combined earnings of the couple. The wife invested 40 percent of her earnings at an annual return of 5 percent and the husband invested 30 percent of his earnings at an annual return of 10 percent. In the second year of their marriage, the combined earnings of the couple increased by 10 percent and the wife’s earnings were five-sixths of her husband’s earnings. The wife invested 48 percent of her earnings and the husband invested 50 percent of his earnings in their respective investment instruments of the previous year. If the couple made no other investments and took out the interest earned in the first year at the beginning of the second year, by approximately what percent was the interest earned by the couple in the second year greater than the interest earned by the couple in the first year of their marriage? The interest income from the couple’s investments is not considered in their earnings.a)30%b)40%c)50%d)60%e)70%Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about In the first year of a couple's marriage, the wife’s earnings were 40 percent of the combined earnings of the couple. The wife invested 40 percent of her earnings at an annual return of 5 percent and the husband invested 30 percent of his earnings at an annual return of 10 percent. In the second year of their marriage, the combined earnings of the couple increased by 10 percent and the wife’s earnings were five-sixths of her husband’s earnings. The wife invested 48 percent of her earnings and the husband invested 50 percent of his earnings in their respective investment instruments of the previous year. If the couple made no other investments and took out the interest earned in the first year at the beginning of the second year, by approximately what percent was the interest earned by the couple in the second year greater than the interest earned by the couple in the first year of their marriage? The interest income from the couple’s investments is not considered in their earnings.a)30%b)40%c)50%d)60%e)70%Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for In the first year of a couple's marriage, the wife’s earnings were 40 percent of the combined earnings of the couple. The wife invested 40 percent of her earnings at an annual return of 5 percent and the husband invested 30 percent of his earnings at an annual return of 10 percent. In the second year of their marriage, the combined earnings of the couple increased by 10 percent and the wife’s earnings were five-sixths of her husband’s earnings. The wife invested 48 percent of her earnings and the husband invested 50 percent of his earnings in their respective investment instruments of the previous year. If the couple made no other investments and took out the interest earned in the first year at the beginning of the second year, by approximately what percent was the interest earned by the couple in the second year greater than the interest earned by the couple in the first year of their marriage? The interest income from the couple’s investments is not considered in their earnings.a)30%b)40%c)50%d)60%e)70%Correct answer is option 'D'. Can you explain this answer?.

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