Find all School-related info fast with the new School-Specific MBA Forum
Learn more about the recent changes... close

It is currently 18 May 2013, 20:06
Customize  |  Hide

Search
Register
New posts
Unanswered

Quick IR Question

  Question banks Downloads My Bookmarks Reviews  
  Oldest Best Reply
Search for:
 
Print view
First unread post
Author Message
Intern
Intern
Joined: 13 Oct 2011
Posts: 8
Concentration: Entrepreneurship, Finance
Schools: HBS '14 (S), Wharton '13 (D), CBS '14 (S), Tuck '14 (I), Fuqua '14 (I)
WE: Corporate Finance (Advertising and PR)
Followers: 0

Kudos [?]: 5 [0], given: 1

Quick IR Question [#permalink] New post 18 Jun 2012, 22:09
This is my first topic so please be kind. The question below is an IR question that I am having trouble setting up. Any input from members would be greatly appreciated.
Attachments

IR Question for GMAT Club.png
IR Question for GMAT Club.png [ 59.16 KiB | Viewed 358 times ]

2 KUDOS received
Kaplan GMAT Instructor
User avatar
Joined: 25 Aug 2009
Posts: 574
Location: Cambridge, MA
Followers: 51

Kudos [?]: 127 [2] , given: 2

GMAT Tests User
Re: Quick IR Question [#permalink] New post 18 Jun 2012, 23:03
2
This post received
KUDOS
crindo2 wrote:
This is my first topic so please be kind. The question below is an IR question that I am having trouble setting up. Any input from members would be greatly appreciated.

Hi Crindo,

You're looking at a classic mixture problem--you can check out here for a little more detail on them.

Basically, we are "mixing" 4% and 8% interest, to get r% interest. Although this problem is discussing interest rates, we shouldn't be distracted, because we don't need any fancy formulas for calculating them. We can use the mixture formula alone--which is, conveniently, given to us by the question stem!

r is given to us as 5%, so we can plug that in to the mixture formula given in the question stem. Do so, then remove fractions:

5(x + y) = 4x + 8y

Distribute:

5x + 5y = 4 x + 8y

Combine like terms:

x = 3y

Now, many TPA problems will not have a single algebraic solution. This is two variables in one equation; it's unsolvable. But we have a limited number of choices to solve for. Plug them in, and we'll find that the only set of answers that works is x = 96, y = 32
_________________

Eli Meyer
Kaplan Teacher
http://www.kaptest.com/GMAT

Prepare with Kaplan and save $150 on a course!

Image

Kaplan Reviews

Intern
Intern
Joined: 13 Oct 2011
Posts: 8
Concentration: Entrepreneurship, Finance
Schools: HBS '14 (S), Wharton '13 (D), CBS '14 (S), Tuck '14 (I), Fuqua '14 (I)
WE: Corporate Finance (Advertising and PR)
Followers: 0

Kudos [?]: 5 [0], given: 1

Re: Quick IR Question [#permalink] New post 19 Jun 2012, 10:27
Thanks so much Eli!
Re: Quick IR Question   [#permalink] 19 Jun 2012, 10:27
    Similar topics Author Replies Last post
Similar
Topics:
 New posts EXPERTS_POSTS_IN_THIS_TOPIC Quick Question... lphiekickmydog 2 23 Aug 2004, 10:46
New posts Quick question Vithal 5 05 Jun 2005, 14:12
New posts Quick question raptr 9 10 Oct 2007, 17:46
New posts quick question tarek99 2 13 Sep 2008, 10:21
New posts A quick question jovic1104 0 09 Jul 2010, 09:36
Display posts from previous: Sort by

Quick IR Question

  Question banks Downloads My Bookmarks Reviews  
Print view
First unread post
Search for:


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®.

Main navigation

GMAT Resources

Partners

MBA Resources

www.gmac.com|www.mba.com