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Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.  A group of 20 friends formed an investment club, with each member cont

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Intern  B
Joined: 10 Jun 2014
Posts: 18
A group of 20 friends formed an investment club, with each member cont  [#permalink]

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Difficulty:   25% (medium)

Question Stats: 75% (01:54) correct 25% (02:00) wrong based on 160 sessions

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A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale?

(A) 800d

(B) $$7d/5$$

(C) $$d /20 + 40$$

(D) $$d/2$$

(E) $$7d/100$$
Manager  B
Joined: 28 Jun 2016
Posts: 215
Concentration: Operations, Entrepreneurship
Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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d becomes 1.4d after increase in stock value.

1.4d has to be divided equally among 20 people.

=1.4d/20. =7d/100

E

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EMPOWERgmat Instructor V
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 15271
Location: United States (CA)
GMAT 1: 800 Q51 V49 GRE 1: Q170 V170 Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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Hi azamaka,

This question can be solved by TESTing VALUES.

We're told that each of 20 members donated the SAME amount of money to a fund and that the TOTAL was D dollars.

IF...
each member contributed $1, then D=20, and we have$20 worth of stock

Next, we're told that the value of the stock increased 40%...

$20 + (.4)($20) = $20 +$8 = $28 The stock is then sold and the money is given equally to the 20 members. This means that each member received...$28/20 = $1.40 We're asked for how much each member received, so we're looking for an answer that equals 1.4 when D=20... There's only one answer that matches... Final Answer: GMAT assassins aren't born, they're made, Rich _________________ Intern  B Joined: 05 Jun 2014 Posts: 9 Re: A group of 20 friends formed an investment club, with each member cont [#permalink] Show Tags 1 There are 20 people with each contributing an equal amount, say 'x' Given, 20x = d after the stock value increases by 40%, 20x is equivalent to 1.4d 20x=1.4d x=1.4d/20 x=7d/100 hence, each member receives 7d/100 option E Target Test Prep Representative G Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2815 Re: A group of 20 friends formed an investment club, with each member cont [#permalink] Show Tags azamaka wrote: A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale? (A) 800d (B) $$7d/5$$ (C) $$d /20 + 40$$ (D) $$d/2$$ (E) $$7d/100$$ After the stock increased by 40%, the new value was 1.4d. Thus, each of the 20 members received 1.4d/20 = 14d/200 = 7d/100. Answer: E _________________ Jeffrey Miller Head of GMAT Instruction Jeff@TargetTestPrep.com See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button. Director  G Joined: 09 Mar 2018 Posts: 994 Location: India Re: A group of 20 friends formed an investment club, with each member cont [#permalink] Show Tags azamaka wrote: A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale? (A) 800d (B) $$7d/5$$ (C) $$d /20 + 40$$ (D) $$d/2$$ (E) $$7d/100$$ If 20 students each gave 5$, then d = 100

Value increased d =140

Each student will get 7$back Put back the value of d in the options to get 7$

E
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Quote which i can relate to.
Many of life's failures happen with people who do not realize how close they were to success when they gave up. Re: A group of 20 friends formed an investment club, with each member cont   [#permalink] 03 Feb 2019, 09:59
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