Problem Solving Pack 2, Question 2 A day-trader plans to invest....

Answer is 3,900.

1400*15=21000

23500-21000=2500

1400+2500=3900

Hi All,

From the prompt, we know that a certain amount of money ($23,500) has to be spread across 15 different accounts (and the minimum amount of money for each account is $1400). We're then asked for the MAXIMUM amount of money that could be deposited into any one account.

Typically, when a question asks for the minimum or maximum possibility, we need to consider how to maximize or minimize OTHER factors in the question.

Here, we know that 15 accounts each require $1400 at the minimum, so let's start there:

(15)($1,400) = $21,000

That $21,000 will cover the minimum amount of each account. The remaining money can then be added to ONE of the accounts...

$23,500 - $21,000 = $2500 of 'extra money'

$1400 + $2500 = $3900 = maximum amount

Final Answer:

GMAT assassins aren't born, they're made,
Rich

We can also just keep track of the HUNDREDS DIGITS (since the hundreds digit is different for each answer choice).

Total of 14 minimized investments = (14)(1400) = $???600
The 15th investment + $???600 = $23,500

So, the HUNDREDS DIGITS of the 15th investment must be 9

Answer: E

The minimum total for 14 of the 15 investments is 14 x 1400 = $19,600, so the maximum amount that can be put in one investment is 23,500 - 19,600 = $3,900.

Answer: E

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.