Find all School-related info fast with the new School-Specific MBA Forum

It is currently 23 Jul 2014, 08:12

Close

GMAT 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

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A person invested $20000 for one year, part at 8.5 percent

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Intern
Intern
avatar
Joined: 22 Sep 2004
Posts: 30
Followers: 0

Kudos [?]: 0 [0], given: 0

A person invested $20000 for one year, part at 8.5 percent [#permalink] New post 25 Feb 2005, 13:09
A person invested $20000 for one year, part at 8.5 percent simple annual interest and part at 12.5 percent simple annual interest. For a $2500 interest, at least how much of the money is to be deposited at 12.5 percent?
Manager
Manager
avatar
Joined: 24 Jan 2005
Posts: 217
Location: Boston
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Feb 2005, 13:27
Well the answer is deposit the entire amount at 12.5% .

since 12.5% of 20,000 = 2500

Equation is

2500 = (8.5/100)*x + (12.5/100)*(20,000-x)

2500 = 2500 - 4x/100

=> x =0
Intern
Intern
avatar
Joined: 22 Sep 2004
Posts: 30
Followers: 0

Kudos [?]: 0 [0], given: 0

 [#permalink] New post 25 Feb 2005, 13:31
You are missing something

The question asking for AT LEAST how much of the money is to be deposited at 12.5 percen

The minimum money needed
Manager
Manager
avatar
Joined: 24 Jan 2005
Posts: 217
Location: Boston
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Feb 2005, 13:38
That's it 20,000

Suppose we deposit $1000 at 8.5% and $19,000 at 12.5%

Then the total interest is 85 + 2375 = 2460 < 2500

You can not deposit anything less than 20,000 for 12.5%
VP
VP
User avatar
Joined: 25 Nov 2004
Posts: 1499
Followers: 5

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 25 Feb 2005, 20:00
let me reword the problem as under:

A has $20,000.00. He/she has two options to make his/her investment: Bond X offers 10% annual coupon intrate rate and Bond Y offers 15% annual coupon interest rate. A plans to make an income of $4500, how much should he invest in X and Y?
Manager
Manager
avatar
Joined: 24 Jan 2005
Posts: 217
Location: Boston
Followers: 1

Kudos [?]: 4 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Feb 2005, 14:11
Is that a new question? Or are you trying to rephrase the problem?
Anyway the answer is 20,000.
SVP
SVP
User avatar
Joined: 03 Jan 2005
Posts: 2255
Followers: 12

Kudos [?]: 187 [0], given: 0

GMAT Tests User
 [#permalink] New post 28 Feb 2005, 14:51
anirban16 wrote:
Is that a new question? Or are you trying to rephrase the problem?
Anyway the answer is 20,000.


It was a new question from MA, anirban. You can see the numbers are different. And you answer may not answer his question. :)
Intern
Intern
avatar
Joined: 02 Dec 2004
Posts: 9
Location: Stockholm, Sweden
Followers: 0

Kudos [?]: 0 [0], given: 0

 [#permalink] New post 28 Feb 2005, 15:22
.125x + .085 (20000-x) = 2500

Solve for x, x = 20000

_________________

The biggest risk in life is not taking one!!!

Director
Director
avatar
Joined: 05 Jan 2005
Posts: 562
Followers: 2

Kudos [?]: 10 [0], given: 0

GMAT Tests User
 [#permalink] New post 05 Mar 2005, 00:21
MA wrote:
let me reword the problem as under:

A has $20,000.00. He/she has two options to make his/her investment: Bond X offers 10% annual coupon intrate rate and Bond Y offers 15% annual coupon interest rate. A plans to make an income of $4500, how much should he invest in X and Y?


What am I doing wrong here?

Let's say Mr A. allocated $X and $Y for bond X and Y resp.

0.1x + 0.15y = 4500 (sum of interests for 1 year)
x + y = 20000 (sum of money invested should be 20,000)

I solve for x and y and i get y = 50K and x = -30K :roll:
Director
Director
User avatar
Joined: 25 Jan 2004
Posts: 728
Location: Milwaukee
Followers: 2

Kudos [?]: 9 [0], given: 0

GMAT Tests User
 [#permalink] New post 05 Mar 2005, 10:27
Arsene_Wenger
you are right in your approach, your answer just means that this made up problem is not solvable. I am sure MA was just trying to convey basic concept behind this problem. If you change 20000 to some number heigher than 50000 problem is solvable

_________________

Praveen

VP
VP
User avatar
Joined: 25 Nov 2004
Posts: 1499
Followers: 5

Kudos [?]: 26 [0], given: 0

GMAT Tests User
 [#permalink] New post 05 Mar 2005, 20:10
anirban16 wrote:
Is that a new question? Or are you trying to rephrase the problem? Anyway the answer is 20,000.


yes, it is rephrased-new question.
  [#permalink] 05 Mar 2005, 20:10
    Similar topics Author Replies Last post
Similar
Topics:
11 Experts publish their posts in the topic A total of $60,000 was invested for one year. Part of this RadhaKrishnan 22 28 Jan 2012, 03:05
A total of $60,000 was invested for one year. Part of this albany09 2 07 Oct 2008, 06:38
1 Experts publish their posts in the topic A total of $60,000 was invested for one year. Part of this ong 17 05 Aug 2006, 07:09
A total of $60,000 was invested for one year. Part of this getzgetzu 1 30 Nov 2005, 23:59
Display posts from previous: Sort by

A person invested $20000 for one year, part at 8.5 percent

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.