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A man spends 20% of his income on house rent, 25% of the remaining

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A man spends 20% of his income on house rent, 25% of the remaining [#permalink]

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A man spends 20% of his income on house rent, 25% of the remaining income on food, and 30% of his total income on conveyance, and saves the rest. If he invested 40% of his savings in shares, how many shares did he purchase?

(1) He spends $80 on his food.
(2) He purchased shares of two different companies only and the price per share of these companies was in the ratio 5:7
[Reveal] Spoiler: OA

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A man spends 20% of his income on house rent, 25% of the remaining [#permalink]

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Gnpth wrote:
A man spends 20% of his income on house rent, 25% of the remaining income on food, and 30% of his total income on conveyance, and saves the rest. If he invested 40% of his savings in shares, how many shares did he purchase?

(1) He spends $80 on his food.
(2) He purchased shares of two different companies only and the price per share of these companies was in the ratio 5:7


Hi,
In order to determine the number of shares, we need the following information:
  • The amount spent on shares, and
  • The price of each share.

From(1) we can find the Total income of the man. => We can also find amount invested in shares. But we don't have any information about the price of each share. Hence, we can't find the number of shares. Insufficient.

From(2) we know only the ratio of the prices of two types of shares. No information about the amount invested in shares and price of each type of shares. Insufficient.

By combining (1) and (2): We know following:
  • the amount spent on shares, and
  • the ratio of the prices of each type of shares.

Still, we don't know the price of each share. Hence, Insufficient.

Answer(E)

Note: Please note that from statement(2) we know the ratio of the price of two types of shares is 5:7. This doesn't imply that price of the type1 share is 5, and price of type 2 share is 7.

Only we can conclude that price of the type1 share is some multiple of 5 and price of the type2 share is some multiple of 7.

Thanks.

Last edited by bb on 12 Aug 2017, 10:18, edited 1 time in total.
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