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# gmat prep 2 question

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Joined: 16 May 2011
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gmat prep 2 question [#permalink]  12 Jun 2012, 12:09
Loan x has a principal of 10000x and a yearly simple interest rate of 4%. loan Y has a principal of $10000y and a yearly simple interest of 8%. Loans x and y will be consolidated to form loan Z with a principal of (10000x + 10000y) and a yearly simple interest rate of r%, where r= 4x + 8y / (x+y). In the table, select a value for x and a value for y corresponding to a yearly simple interest rate of 5% for the consolidated load. make only two selections, value x y 21 32 51 64 81 96 Dont know how to solve this question without T and E . Can someone explain the shortcut Intern Affiliations: The Princeton Review Joined: 14 Feb 2012 Posts: 8 Location: United States Followers: 0 Kudos [?]: 18 [6] , given: 0 Re: gmat prep 2 question [#permalink] 12 Jun 2012, 15:45 6 This post received KUDOS 1 This post was BOOKMARKED What are the correct answers? It seems to me that the answers are x=96 and y=32. Here's the quick math: r is supposed to equal 5. You're given the formula for calculating r. r = (4x + 8y) / (x + y). Is that the correct formula? The original looks like the x+y is only under the 8y, not under the entire 4x + 8y. Anyway, let's just assume that the formula I wrote is correct. Just substitute 5 in for r and solve for x in terms of y. 5 = (4x + 8y) / (x + y). Multiply both sides by (x+y) 5x + 5y = 4x + 8y. Get x's on one side and y's on the other. x = 3y. Look for answer choices in which one is triple another. Only 32 and 96 work. Current Student Affiliations: UWC Joined: 09 May 2012 Posts: 399 Location: India GMAT 1: 620 Q42 V33 GMAT 2: 680 Q44 V38 GPA: 3.43 WE: Engineering (Entertainment and Sports) Followers: 26 Kudos [?]: 417 [1] , given: 100 Re: gmat prep 2 question [#permalink] 13 Jun 2012, 01:41 1 This post received KUDOS 1 This post was BOOKMARKED Here's my take: 4x+8y/(x+y) = 5 4x+8y = 5x + 5y x = 3y Choices: 21 32 51 64 81 96 Check lowest 3 choices: 21*3 = 63 (not in lower three choices; eliminated) 32*3 = 96 (present in lower three; RIGHT ANSWER) Thus: x = 96 y = 32 (oops: error corrected!) Last edited by macjas on 13 Jun 2012, 16:54, edited 2 times in total. Intern Affiliations: The Princeton Review Joined: 14 Feb 2012 Posts: 8 Location: United States Followers: 0 Kudos [?]: 18 [0], given: 0 Re: gmat prep 2 question [#permalink] 13 Jun 2012, 13:13 macjas wrote: Here's my take: 4x+8y/(x+y) = 5 4x+8y = 5x + 5y x = 3y Choices: 21 32 51 64 81 96 Check lowest 3 choices: 21*3 = 63 (not in lower three choices; eliminated) 32*3 = 96 (present in lower three; RIGHT ANSWER) Thus: x = 32 y = 96 Other way around, right? If x= 3y, x=96 and y =32. Intern Joined: 05 Dec 2011 Posts: 48 Followers: 0 Kudos [?]: 0 [0], given: 18 Re: gmat prep 2 question [#permalink] 01 Jul 2012, 23:47 Hey macjas then why this line is provided in the question "Loan x has a principal of 10000x and a yearly simple interest rate of 4%. loan Y has a principal of$10000y and a yearly simple interest of 8% " is of no use . Then why this line has been provided in the question ??just to confuse us !!

Current Student
Affiliations: UWC
Joined: 09 May 2012
Posts: 399
Location: India
GMAT 1: 620 Q42 V33
GMAT 2: 680 Q44 V38
GPA: 3.43
WE: Engineering (Entertainment and Sports)
Followers: 26

Kudos [?]: 417 [0], given: 100

Re: gmat prep 2 question [#permalink]  01 Jul 2012, 23:51
debabrata44 wrote:
Hey macjas then why this line is provided in the question "Loan x has a principal of 10000x and a yearly simple interest rate of 4%. loan Y has a principal of \$10000y and a yearly simple interest of 8% " is of no use . Then why this line has been provided in the question ??just to confuse us !!

Exactly! It's of no use! This is one of the fundamental ways in which IR differs from the Q/V section of the GMAT. IR is supposed to reflect 'real world' data; you need to figure out whether a data piece of data is relevant or not.
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Re: gmat prep 2 question [#permalink]  02 Jul 2012, 01:12
thanks a lot macjas !!
Re: gmat prep 2 question   [#permalink] 02 Jul 2012, 01:12
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