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A sum of $100,000 was invested in two deposits at simple interest rate

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A sum of $100,000 was invested in two deposits at simple interest rate  [#permalink]

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New post 27 Sep 2018, 05:36
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A
B
C
D
E

Difficulty:

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Question Stats:

90% (02:00) correct 10% (02:17) wrong based on 38 sessions

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A sum of $100,000 was invested in two deposits at simple interest rates of 3 percent and 4 percent, respectively. If the total interest on the two certificates was $3600 at the end of one year, what fractional part of the 100,000 was invested at 4 percent?


(A) 5/8

(B) 1/5

(C) 2/3

(D) 3/5

(E) 3/7

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Re: A sum of $100,000 was invested in two deposits at simple interest rate  [#permalink]

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New post 27 Sep 2018, 06:24
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Bunuel wrote:
A sum of $100,000 was invested in two deposits at simple interest rates of 3 percent and 4 percent, respectively. If the total interest on the two certificates was $3600 at the end of one year, what fractional part of the 100,000 was invested at 4 percent?


(A) 5/8

(B) 1/5

(C) 2/3

(D) 3/5

(E) 3/7



Let, SUm invested at 4% = x
i.e.e Sum invested at 3% = 100000-x

\((4/100)*x + (3/100)*(100000-x) = 3600\)

i.e. \(4x+300000-3x = 360000\)

i.e. \(x = 60000\)

\(Fraction = 60000/100000 = 3/5\)

Answer: Option D
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Re: A sum of $100,000 was invested in two deposits at simple interest rate  [#permalink]

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New post 27 Sep 2018, 07:42
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Bunuel wrote:
A sum of $100,000 was invested in two deposits at simple interest rates of 3 percent and 4 percent, respectively. If the total interest on the two certificates was $3600 at the end of one year, what fractional part of the 100,000 was invested at 4 percent?


(A) 5/8

(B) 1/5

(C) 2/3

(D) 3/5

(E) 3/7


3-----------------------------------4
----------------3.6------------------
0.4--------------------------------0.6

AMount invested at 4% ROI is \(\frac{0.60}{(0.40 + 0.60)}= \frac{3}{5}\), Answer must be (D)
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Re: A sum of $100,000 was invested in two deposits at simple interest rate  [#permalink]

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New post 27 Sep 2018, 08:40
Another approach would be to assume that each takes 50,000 (1/2)

Now 50,000 * 3/100 = 1,500
50,000 * 4/100 = 2,000

Indicating that the 4% investment should weigh more than 1/2 as a result we know option B and E are incorrect.

Now if we are to pick from the remaining answers and we pick D

It would be 3/5 * 100,000 = 60,000

60,000 * 4/100 = 2,400

40,000 * 3/100 = 1,200

Total = 2,400 + 1,200 = 3,600

Answer choice D

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Re: A sum of $100,000 was invested in two deposits at simple interest rate  [#permalink]

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New post 02 Oct 2018, 19:55
Bunuel wrote:
A sum of $100,000 was invested in two deposits at simple interest rates of 3 percent and 4 percent, respectively. If the total interest on the two certificates was $3600 at the end of one year, what fractional part of the 100,000 was invested at 4 percent?


(A) 5/8

(B) 1/5

(C) 2/3

(D) 3/5

(E) 3/7



We can let n = the amount of money invested at 4% interest. Thus, the amount at 3% is (100,000 - n). We can create the following equation:

0.04n + 0.03(100,000 - n) = 3,600

0.04n + 3,000 - 0.03n = 3,600

0.01n = 600

n = 60,000

We see that $60,000 is 60,000/100,000 = 6/10 = 3/5 of the total amount invested.

Answer: D
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Re: A sum of $100,000 was invested in two deposits at simple interest rate   [#permalink] 02 Oct 2018, 19:55
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