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A group of 20 friends formed an investment club, with each member cont

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A group of 20 friends formed an investment club, with each member cont  [#permalink]

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New post 11 Sep 2016, 08:19
1
4
00:00
A
B
C
D
E

Difficulty:

  25% (medium)

Question Stats:

76% (01:50) correct 24% (01:59) wrong based on 132 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) \(7d/100\)
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Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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New post 11 Sep 2016, 08:41
2
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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Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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New post 11 Sep 2016, 17:57
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...

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Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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New post 25 Oct 2017, 02:05
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
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Re: A group of 20 friends formed an investment club, with each member cont  [#permalink]

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New post 29 Oct 2017, 06:24
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
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Re: A group of 20 friends formed an investment club, with each member cont &nbs [#permalink] 29 Oct 2017, 06:24
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