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A school must raise exactly $2,500 over the next year by investing a [#permalink]
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19 Mar 2017, 07:06
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68% (01:58) correct 32% (01:50) wrong based on 76 sessions
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A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks? A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000
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Re: A school must raise exactly $2,500 over the next year by investing a [#permalink]
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19 Mar 2017, 07:50
Bunuel wrote: A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?
A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000 let x be the amount to be invested in stocks 9x/100 + (8/100)*(30000x) = 2500 9x + 240000  8x = 250000 x = 10000 Hence option B is correct Hit Kudos if you liked it



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Re: A school must raise exactly $2,500 over the next year by investing a [#permalink]
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19 Mar 2017, 07:55
0akshay0 wrote: Bunuel wrote: A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?
A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000 let x be the amount to be invested in stocks 9x/100 + (8/100)*(30000x) = 2500 9x + 240000  8x = 250000 x = 10000 Hence option B is correct Hit Kudos if you liked it Could you please elaborate your approach? Sent from my ONE E1003 using GMAT Club Forum mobile app



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A school must raise exactly $2,500 over the next year by investing a [#permalink]
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19 Mar 2017, 08:14
appu2693 wrote: 0akshay0 wrote: Bunuel wrote: A school must raise exactly $2,500 over the next year by investing a total of $30,000 in stocks, which yield 9% annual interest, and bonds, which yield 8% annual interest. If the school wants to invest as much as possible in stocks, then how much should the school invest in stocks?
A. $1,000 B. $10,000 C. $20,000 D. $29,000 E. $30,000 let x be the amount to be invested in stocks 9x/100 + (8/100)*(30000x) = 2500 9x + 240000  8x = 250000 x = 10000 Hence option B is correct Hit Kudos if you liked it Could you please elaborate your approach? Sent from my ONE E1003 using GMAT Club Forum mobile appThe school must raise exactly $2,500 by investing as much as possible in stocks. I have assumed that amount to be x. Investment in stocks yields 9% therefore the returns from this investment = 9x/100 The remaining amount i.e. (30000x) is invested in bonds, which yield 8% annual interest. i.e. (8/100)*(30000x) The sum of the returns from both investments = 2500. So, 9x/100 + (8/100)*(30000x) = 2500 x = 10000 therefore the school must invest 10000 in stocks to raise exactly $2,500 by investing as much as possible in stocks. appu2693 : Hope its clear Hit Kudos if you liked it



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A school must raise exactly $2,500 over the next year by investing a [#permalink]
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14 Nov 2017, 00:51
One of the quickest way to solve this problem is using allegation. If whole amount is invested in stock, the return: $30000*9% = $2700 If whole amount is invested in bond, the return: $30000*8% = $2400 But the return needed is exactly $2500 See attachment. Hence the total amount needs to be invested in stock and bond in the ratio 1:2. Therefore amount invested in stock is $30000*(1/3) = $10000.
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A school must raise exactly $2,500 over the next year by investing a
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