GMAT Data Insights Practice Set 8 (Multi-Source Reasoning)

The following chart depicts the Total Interest Charged (TIC) for loans offered by Credit Makers Credit Union (CMCU). Listed according to term offering and loan amount. The TIC is the percentage of the loan amount that has to be paid back as interest and is divided equally between each year. No bonuses or other adjustments are included.

General memo to employees of CMCU:

March 25th

In order to improve the return rate of our loans, we are seeking to increase the TIC for longer term loans. We have begun two new policies. All loans taken with terms of 5 years or less now receive, as a bonus, a 1% lower TIC. Moreover, preferred customers (those who have previously taken loans of any term length in amounts of $25,000 or more) will receive a bonus of a 2% lower TIC when they take a loan with a term of 5 or 10 years in the amount of at least $25,000. Other loans continue at the standard rates.

We have also revised the penalties for early closure and made them applicable to all new loans. The penalties are as follows: For any loan, early closure in less than a year after the loan is taken results in a penalty equal to interest charged in the first year. For 2-year loans, early closure after the first year results in a penalty equal to one year of interest. For 5-year and 10-year loans, closure after the first year results in a penalty equal to two years of interest and of loss of any bonus TIC deductions.

The following chart depicts the Total Interest Charged (TIC) for loans offered by Credit Makers Credit Union (CMCU). Listed according to term offering and loan amount. The TIC is the percentage of the loan amount that has to be paid back as interest and is divided equally between each year. No bonuses or other adjustments are included.

General memo to employees of CMCU:

March 25th

In order to improve the return rate of our loans, we are seeking to increase the TIC for longer term loans. We have begun two new policies. All loans taken with terms of 5 years or less now receive, as a bonus, a 1% lower TIC. Moreover, preferred customers (those who have previously taken loans of any term length in amounts of $25,000 or more) will receive a bonus of a 2% lower TIC when they take a loan with a term of 5 or 10 years in the amount of at least $25,000. Other loans continue at the standard rates.

We have also revised the penalties for early closure and made them applicable to all new loans. The penalties are as follows: For any loan, early closure in less than a year after the loan is taken results in a penalty equal to interest charged in the first year. For 2-year loans, early closure after the first year results in a penalty equal to one year of interest. For 5-year and 10-year loans, closure after the first year results in a penalty equal to two years of interest and of loss of any bonus TIC deductions.

The following chart depicts the Total Interest Charged (TIC) for loans offered by Credit Makers Credit Union (CMCU). Listed according to term offering and loan amount. The TIC is the percentage of the loan amount that has to be paid back as interest and is divided equally between each year. No bonuses or other adjustments are included.

General memo to employees of CMCU:

March 25th

In order to improve the return rate of our loans, we are seeking to increase the TIC for longer term loans. We have begun two new policies. All loans taken with terms of 5 years or less now receive, as a bonus, a 1% lower TIC. Moreover, preferred customers (those who have previously taken loans of any term length in amounts of $25,000 or more) will receive a bonus of a 2% lower TIC when they take a loan with a term of 5 or 10 years in the amount of at least $25,000. Other loans continue at the standard rates.

We have also revised the penalties for early closure and made them applicable to all new loans. The penalties are as follows: For any loan, early closure in less than a year after the loan is taken results in a penalty equal to interest charged in the first year. For 2-year loans, early closure after the first year results in a penalty equal to one year of interest. For 5-year and 10-year loans, closure after the first year results in a penalty equal to two years of interest and of loss of any bonus TIC deductions.

Farm Table Inc. is a local small business that specializes in high quality rustic dining furniture. They currently offer three designs: Vermont, Amish, and Heartland. All three designs are offered in lengths of 5, 8, 10, and 12 feet. Customers are able to choose from a variety of paints, stains, and finishes. The company website includes a description of each design:

Vermont: A true classic, the Vermont features elegant trestles with a stretcher that lays across the floor, giving it ultimate support, with a touch of class. A narrow top provides an intimate setting reminiscent of cozy New England dinners. Includes benches (2).

Amish: Built to last, the Amish is truly a product of a master craftsman. Hand turned legs that are simple yet refined, this piece will be the statement of family in your dining room. Includes chairs (4), additional chairs can be purchased (sets of 2).

Heartland: A simple classic, the Heartland is suitable for both a formal dining room or a bustling kitchen. The wide surface and durable finish can withstand dining, crafts, homework, and game night, just like Grandma’s! Includes benches (2), chairs can be purchased (sets of 2).

S&H charges are determined at time of order, based on weight and destination. Ships through ABC Parcel Co

Farm Table Inc. is a local small business that specializes in high quality rustic dining furniture. They currently offer three designs: Vermont, Amish, and Heartland. All three designs are offered in lengths of 5, 8, 10, and 12 feet. Customers are able to choose from a variety of paints, stains, and finishes. The company website includes a description of each design:

Vermont: A true classic, the Vermont features elegant trestles with a stretcher that lays across the floor, giving it ultimate support, with a touch of class. A narrow top provides an intimate setting reminiscent of cozy New England dinners. Includes benches (2).

Amish: Built to last, the Amish is truly a product of a master craftsman. Hand turned legs that are simple yet refined, this piece will be the statement of family in your dining room. Includes chairs (4), additional chairs can be purchased (sets of 2).

Heartland: A simple classic, the Heartland is suitable for both a formal dining room or a bustling kitchen. The wide surface and durable finish can withstand dining, crafts, homework, and game night, just like Grandma’s! Includes benches (2), chairs can be purchased (sets of 2).

S&H charges are determined at time of order, based on weight and destination. Ships through ABC Parcel Co

Farm Table Inc. is a local small business that specializes in high quality rustic dining furniture. They currently offer three designs: Vermont, Amish, and Heartland. All three designs are offered in lengths of 5, 8, 10, and 12 feet. Customers are able to choose from a variety of paints, stains, and finishes. The company website includes a description of each design:

Vermont: A true classic, the Vermont features elegant trestles with a stretcher that lays across the floor, giving it ultimate support, with a touch of class. A narrow top provides an intimate setting reminiscent of cozy New England dinners. Includes benches (2).

Amish: Built to last, the Amish is truly a product of a master craftsman. Hand turned legs that are simple yet refined, this piece will be the statement of family in your dining room. Includes chairs (4), additional chairs can be purchased (sets of 2).

Heartland: A simple classic, the Heartland is suitable for both a formal dining room or a bustling kitchen. The wide surface and durable finish can withstand dining, crafts, homework, and game night, just like Grandma’s! Includes benches (2), chairs can be purchased (sets of 2).

S&H charges are determined at time of order, based on weight and destination. Ships through ABC Parcel Co

Betty’s Baked Goods operates out of Seattle, Washington. They offer pre-made and DIY baked goods, made from all-natural ingredients, with no preservatives added. All of their products can be packaged into one of five categories:

1. 15-piece bite sized pre-made: $28.99 (2.5 pounds*)
2. 15-piece bite sized DIY: $24.99 (1.25 pounds*)
3. 6-piece full sized pre-made: $49.99 (6 pounds*)
4. 6-piece full sized DIY: $39.99 (3 pounds*)
5. 6-piece assortment (3 full size pre-made, 3 full size DIY): $45.99 (4.5 pounds*)

*Weight includes packaging

Betty’s uses two shipping methods, both by Fast Food Shipping: Standard and Special Delivery. Pre-made items must ship through Special Delivery, whereas DIY can ship either.

1. Standard Delivery: $10 plus $6/pound
2. Special Delivery: $35 plus $10/pound

If an order contains items that can be shipped using either service, the customer may choose which shipping method they prefer.

Betty’s Baked Goods operates out of Seattle, Washington. They offer pre-made and DIY baked goods, made from all-natural ingredients, with no preservatives added. All of their products can be packaged into one of five categories:

1. 15-piece bite sized pre-made: $28.99 (2.5 pounds*)
2. 15-piece bite sized DIY: $24.99 (1.25 pounds*)
3. 6-piece full sized pre-made: $49.99 (6 pounds*)
4. 6-piece full sized DIY: $39.99 (3 pounds*)
5. 6-piece assortment (3 full size pre-made, 3 full size DIY): $45.99 (4.5 pounds*)

*Weight includes packaging

Betty’s uses two shipping methods, both by Fast Food Shipping: Standard and Special Delivery. Pre-made items must ship through Special Delivery, whereas DIY can ship either.

1. Standard Delivery: $10 plus $6/pound
2. Special Delivery: $35 plus $10/pound

If an order contains items that can be shipped using either service, the customer may choose which shipping method they prefer.

Betty’s Baked Goods operates out of Seattle, Washington. They offer pre-made and DIY baked goods, made from all-natural ingredients, with no preservatives added. All of their products can be packaged into one of five categories:

1. 15-piece bite sized pre-made: $28.99 (2.5 pounds*)
2. 15-piece bite sized DIY: $24.99 (1.25 pounds*)
3. 6-piece full sized pre-made: $49.99 (6 pounds*)
4. 6-piece full sized DIY: $39.99 (3 pounds*)
5. 6-piece assortment (3 full size pre-made, 3 full size DIY): $45.99 (4.5 pounds*)

*Weight includes packaging

Betty’s uses two shipping methods, both by Fast Food Shipping: Standard and Special Delivery. Pre-made items must ship through Special Delivery, whereas DIY can ship either.

1. Standard Delivery: $10 plus $6/pound
2. Special Delivery: $35 plus $10/pound

If an order contains items that can be shipped using either service, the customer may choose which shipping method they prefer.

ABC Candy Company offers five different taste categories of candy. The pie chart displays company-wide sales distribution of the five categories.

This table represents the state and product volume of sales distribution for the Sour line of candies.

ABC Candy Company offers five different taste categories of candy. The pie chart displays company-wide sales distribution of the five categories.

This table represents the state and product volume of sales distribution for the Sour line of candies.

ABC Candy Company offers five different taste categories of candy. The pie chart displays company-wide sales distribution of the five categories.

This table represents the state and product volume of sales distribution for the Sour line of candies.