Author 
Message 
TAGS:

Hide Tags

Math Expert
Joined: 02 Sep 2009
Posts: 47092

A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
09 Mar 2014, 15:07
Question Stats:
84% (01:36) correct 16% (01:55) wrong based on 416 sessions
HideShow timer Statistics
The Official Guide For GMAT® Quantitative Review, 2ND EditionA $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have? (A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12% Problem Solving Question: 143 Category: Algebra Percents Page: 80 Difficulty: 650 GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition  Quantitative Questions ProjectEach week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution. We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation. Thank you!
Official Answer and Stats are available only to registered users. Register/ Login.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics




Math Expert
Joined: 02 Sep 2009
Posts: 47092

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
09 Mar 2014, 15:08
SOLUTIONA $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have?(A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12% The ratio of investments is 500:1,500 = 1:3. The deviation from the average return from $500 investment and $1,500 investment must be in the ration 3:1. $500 investment return has the deviation from the mean of 8.57=1.5%, thus $1,500 investment return must have the deviation from the mean equal to 0.5%, which means that $1 ,500 investment has 8.5+0.5=9% yearly return. Answer: A.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics




Intern
Affiliations: CA, SAP FICO
Joined: 22 Nov 2012
Posts: 35
Location: India
Concentration: Finance, Sustainability
GMAT 1: 620 Q42 V33 GMAT 2: 720 Q47 V41
GPA: 3.2
WE: Corporate Finance (Energy and Utilities)

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
09 Mar 2014, 18:48
Can be solved in 2 ways:
Fast method (Using ratios):
500$ & 1500 $ are in the ratio of 1:3
Since $500 gives a return on 7%, its 1.5 % away from 8.5%(the average return)
So ratio of returns of $500: $1500 should be in the ratio 3:1 deviation from 8.5%.
Therefore the return on $1500 = 8.5% + (1.5%/3) = 9%
Method 2  General Math
Total annual return on both @ 8.5% = $170
Return on $500 @ 7% = $35.
So return on $1500 = $170$35 = $135
Rate = (135/1500)*100 = 9%



SVP
Status: The Best Or Nothing
Joined: 27 Dec 2012
Posts: 1837
Location: India
Concentration: General Management, Technology
WE: Information Technology (Computer Software)

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
09 Mar 2014, 19:18
(A) 9% Total Capital = 2000 Total Return @ 8.5 % = 170 Return from 500 is @ 7% = 35 Balance = 17035 = 135 Percentage = 100 * 135 / 1500 = 9
_________________
Kindly press "+1 Kudos" to appreciate



Manager
Joined: 20 Dec 2013
Posts: 249
Location: India

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
09 Mar 2014, 23:52
Option A. 8.5% on 2000=170 Of ths 7% of 500 is one part and x% of 1500 is the other part 7% of 500=35 17035=135 x% of 1500=135 x=9



Current Student
Joined: 25 Sep 2012
Posts: 271
Location: India
Concentration: Strategy, Marketing
GMAT 1: 660 Q49 V31 GMAT 2: 680 Q48 V34

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
11 Mar 2014, 02:53
8.5  7 = 1.5 x  8 = 0.5 x = 9 How 0.5? Because the ratio is 1:3. Check Image Answer A Time Taken 00:45 Difficulty level 600
Attachments
File comment: Alligations
Allgn.jpg [ 4.65 KiB  Viewed 6964 times ]



Director
Joined: 25 Apr 2012
Posts: 701
Location: India
GPA: 3.21
WE: Business Development (Other)

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
11 Mar 2014, 03:10
A $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have?
(A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12%
Sol: Given that (1500+500)*(8.5%)= $170 Total return and $500 has yearly return of 7% or 500*7/100 =$35...So remaining $135 is the return on Investment of $1500 so we have 1500*a/100=135 or a=135*100/1500 > a =9% Ans is E 600 level is okay
_________________
“If you can't fly then run, if you can't run then walk, if you can't walk then crawl, but whatever you do you have to keep moving forward.”



Intern
Joined: 30 Jan 2014
Posts: 13

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
11 Mar 2014, 08:06
X017in wrote: So ratio of returns of $500: $1500 should be in the ratio 3:1 deviation from 8.5%.
Can someone elaborate this part please ?



Intern
Joined: 28 Jan 2014
Posts: 14
Location: India

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
15 Mar 2014, 00:39
lool wrote: X017in wrote: So ratio of returns of $500: $1500 should be in the ratio 3:1 deviation from 8.5%.
Can someone elaborate this part please ? It is given that the $500 investment is 1.5% BELOW the average. Which means that the $1500 investment has to be X% above average to balance the combined interest of 8.5% 500 * 1.5 = 1500 * X X = (500 / 1500) * 1.5 X = (1/3) * 1.5 > This can be rewritten as X/1.5 = 1/3, which is the ratio that is mentioned above X = 0.5% above the average Ans = 9%



Math Expert
Joined: 02 Sep 2009
Posts: 47092

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
15 Mar 2014, 09:54
SOLUTIONA $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have?(A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12% The ratio of investments is 500:1,500 = 1:3. The deviation from the average return from $500 investment and $1,500 investment must be in the ration 3:1. $500 investment return has the deviation from the mean of 8.57=1.5%, thus $1,500 investment return must have the deviation from the mean equal to 0.5%, which means that $1 ,500 investment has 8.5+0.5=9% yearly return. Answer: A.
_________________
New to the Math Forum? Please read this: Ultimate GMAT Quantitative Megathread  All You Need for Quant  PLEASE READ AND FOLLOW: 12 Rules for Posting!!! Resources: GMAT Math Book  Triangles  Polygons  Coordinate Geometry  Factorials  Circles  Number Theory  Remainders; 8. Overlapping Sets  PDF of Math Book; 10. Remainders  GMAT Prep Software Analysis  SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS)  Tricky questions from previous years.
Collection of Questions: PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.
What are GMAT Club Tests? Extrahard Quant Tests with Brilliant Analytics



Manager
Status: suffer now and live forever as a champion!!!
Joined: 01 Sep 2013
Posts: 130
Location: India
Dheeraj: Madaraboina
GPA: 3.5
WE: Information Technology (Computer Software)

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
22 Apr 2014, 00:24
Hi Bunuel,
Could you please explain me the highlighted part "The deviation from the average return from $500 investment and $1,500 investment must be in the ration 3:1.
$500 investment return has the deviation from the mean of 8.57=1.5%, thus $1,500 investment return must have the deviation from the mean equal to 0.5%, which means that $1 ,500 investment has 8.5+0.5=9% yearly return."
Though i understood the basic math approach, i am unable to understand in ratio approach.
Help is appreciated . Thanks in advance ;



Intern
Joined: 02 Jul 2014
Posts: 11
Location: India
Concentration: Technology, Strategy
GMAT Date: 08162015
GPA: 2.69
WE: Design (Manufacturing)

Re: A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
14 Jul 2016, 08:49
2000x0.85=0.7x500+15x x=135/15=9% A is the answer Bunuel wrote: The Official Guide For GMAT® Quantitative Review, 2ND EditionA $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have? (A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12% Problem Solving Question: 143 Category: Algebra Percents Page: 80 Difficulty: 650 GMAT Club is introducing a new project: The Official Guide For GMAT® Quantitative Review, 2ND Edition  Quantitative Questions ProjectEach week we'll be posting several questions from The Official Guide For GMAT® Quantitative Review, 2ND Edition and then after couple of days we'll provide Official Answer (OA) to them along with a slution. We'll be glad if you participate in development of this project: 1. Please provide your solutions to the questions; 2. Please vote for the best solutions by pressing Kudos button; 3. Please vote for the questions themselves by pressing Kudos button; 4. Please share your views on difficulty level of the questions, so that we have most precise evaluation. Thank you!



SC Moderator
Joined: 22 May 2016
Posts: 1829

A $500 investment and a $1,500 investment have a combined ye [#permalink]
Show Tags
14 Oct 2017, 16:45
Bunuel wrote: The Official Guide For GMAT® Quantitative Review, 2ND EditionA $500 investment and a $1,500 investment have a combined yearly return of 8.5 percent of the total of the two investments. If the $500 investment has a yearly return of 7 percent, what percent yearly return does the $1 ,500 investment have? (A) 9% (B) 10% (C) 10 5/8% (D) 11% (E) 12% Two amounts with two different weights and rates contribute to an overall rate of return on their combined amount Straight weighted average A = $500 portion B = $1500 portion r = interest rate \((A_{r}*A_{amt})+(B_{r}*B_{amt}) = (A+B)_{r}* (A+B)_{amt}\)\((.07)(500) + (\frac{x}{100})(1500)= (.085)(2000)\) \(35 + 15x = 170\) \(15x = 135\) \(x = \frac{135}{15} = 9\) The interest rate for the $1,500 portion is 9 percent Answer A
_________________
In the depths of winter, I finally learned that within me there lay an invincible summer.  Albert Camus, "Return to Tipasa"




A $500 investment and a $1,500 investment have a combined ye
[#permalink]
14 Oct 2017, 16:45






