GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 24 Sep 2018, 08:33

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

A trader has lost 15% on a $10,000 investment. He is going to buy a st

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 49429
A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 07:11
00:00
A
B
C
D
E

Difficulty:

  95% (hard)

Question Stats:

56% (01:57) correct 44% (03:14) wrong based on 58 sessions

HideShow timer Statistics

A trader has lost 15% on a $10,000 investment. He is going to buy a stock that is guaranteed a 12% gain. How much should he invest in this stock so that the net gain for the entire portfolio is 4%?

A. $23,750
B. $15,833
C. $13,750
D. $10,700
E. $10,000

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Senior Manager
Senior Manager
User avatar
G
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)
A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post Updated on: 19 Mar 2017, 09:04
Bunuel wrote:
A trader has lost 15% on a $10,000 investment. He is going to buy a stock that is guaranteed a 12% gain. How much should he invest in this stock so that the net gain for the entire portfolio is 4%?

A. $23,750
B. $15,833
C. $13,750
D. $10,700
E. $10,000


let x be the amount that must be invested

12x/100 - (15/100)*10000 = (4/100)*(10000+x)
12x/100 - 1500 = 400 + 4x/100
12x - 4x = 190000
x = 23,750
Hence option A is correct
Hit Kudos if you liked it 8-)

Originally posted by 0akshay0 on 19 Mar 2017, 07:23.
Last edited by 0akshay0 on 19 Mar 2017, 09:04, edited 1 time in total.
Intern
Intern
avatar
Joined: 02 Oct 2016
Posts: 2
GMAT 1: 660 Q50 V29
GMAT 2: 740 Q51 V39
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 07:49
let x be the amount that must be invested

(-0,15*10000+0,12*x)/(10000+x)=0,04 => (-1500+0,12x)/(10000+x)=0,04 =>-1500+0,12x=400+0,04x =>0,08x=1900 => x=23750
Answer is A
Senior Manager
Senior Manager
User avatar
G
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)
A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 08:07
1
kwindi wrote:
let x be the amount that must be invested

(-0,15*10000+0,12*x)/(10000+x)=0,04 => (-1500+0,12x)/(10000+x)=0,04 =>-1500+0,12x=400+0,04x =>0,08x=1900 => x=23750
Answer is A


since the trader lost 15% on 10000. He was left with 8500.

now 12% of x = 0.12 * 23750 (according to your answer) = 2850.... so 2850 + 8500 = 11350

(11350-10000)/10000 = 1350/10000 = 13.5% and not 4% net gain.

hope its clear :)
Kudos if you liked it 8-)
Intern
Intern
avatar
Joined: 02 Oct 2016
Posts: 2
GMAT 1: 660 Q50 V29
GMAT 2: 740 Q51 V39
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 08:22
0akshay0 wrote:
kwindi wrote:
let x be the amount that must be invested

(-0,15*10000+0,12*x)/(10000+x)=0,04 => (-1500+0,12x)/(10000+x)=0,04 =>-1500+0,12x=400+0,04x =>0,08x=1900 => x=23750
Answer is A


since the trader lost 15% on 10000. He was left with 8500.

now 12% of x = 0.12 * 23750 (according to your answer) = 2850.... so 2850 + 8500 = 11350

(11350-10000)/10000 = 1350/10000 = 13.5% and not 4% net gain.

hope its clear :)
Kudos if you liked it 8-)


The portfolio consists of 2 assets: one in which we invested 10000 and the second one in which we invest x. Therefore, the net gain is 0,12*x-0,15*10000=0,12x-1500. Meaning that the return is (0,12x-1500)/(total investment=10000+x)=0,04
Intern
Intern
avatar
B
Joined: 03 Feb 2017
Posts: 6
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 08:46
A 23750 ✓

-1500 + 0.12x = 0.04x ( 10000+x)

Where x is the amount he decides to invest in stock that has return of 12%



Sent from my ONEPLUS A3003 using GMAT Club Forum mobile app
Intern
Intern
avatar
B
Joined: 23 Aug 2016
Posts: 4
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 19 Mar 2017, 08:51
1
Let the amount to be invested be x. So,

12% of x - 1500 = 4% of (10000 + x){the amount invested at 12% needs to make up for the $1500 loss to give an overall 4% gain}

12% of x -1500 = 400 + 4% of x
12% of x - 4% of x = 1900
8% of x = 1900

x = 1900 *100/8
x = 23750
Senior Manager
Senior Manager
User avatar
G
Joined: 19 Apr 2016
Posts: 274
Location: India
GMAT 1: 570 Q48 V22
GMAT 2: 640 Q49 V28
GPA: 3.5
WE: Web Development (Computer Software)
A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post Updated on: 20 Mar 2017, 02:32
kwindi wrote:
0akshay0 wrote:
kwindi wrote:
let x be the amount that must be invested

(-0,15*10000+0,12*x)/(10000+x)=0,04 => (-1500+0,12x)/(10000+x)=0,04 =>-1500+0,12x=400+0,04x =>0,08x=1900 => x=23750
Answer is A


since the trader lost 15% on 10000. He was left with 8500.

now 12% of x = 0.12 * 23750 (according to your answer) = 2850.... so 2850 + 8500 = 11350

(11350-10000)/10000 = 1350/10000 = 13.5% and not 4% net gain.

hope its clear :)
Kudos if you liked it 8-)


The portfolio consists of 2 assets: one in which we invested 10000 and the second one in which we invest x. Therefore, the net gain is 0,12*x-0,15*10000=0,12x-1500. Meaning that the return is (0,12x-1500)/(total investment=10000+x)=0,04


Understood what I was missing thanks :)
corrected my answer

Originally posted by 0akshay0 on 19 Mar 2017, 09:24.
Last edited by 0akshay0 on 20 Mar 2017, 02:32, edited 1 time in total.
Senior Manager
Senior Manager
User avatar
B
Status: Come! Fall in Love with Learning!
Joined: 05 Jan 2017
Posts: 457
Location: India
Premium Member
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st  [#permalink]

Show Tags

New post 20 Mar 2017, 02:22
Bunuel wrote:
A trader has lost 15% on a $10,000 investment. He is going to buy a stock that is guaranteed a 12% gain. How much should he invest in this stock so that the net gain for the entire portfolio is 4%?

A. $23,750
B. $15,833
C. $13,750
D. $10,700
E. $10,000


let the investment in this stock be x
loss is 1500
profit from second stock = 0.12x
net profit = 0.12x-1500 = 0.04(10000+x)

solving for x, we get x = 23750

Option A
_________________

GMAT Mentors
Image

GMAT Club Bot
Re: A trader has lost 15% on a $10,000 investment. He is going to buy a st &nbs [#permalink] 20 Mar 2017, 02:22
Display posts from previous: Sort by

A trader has lost 15% on a $10,000 investment. He is going to buy a st

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  

Events & Promotions

PREV
NEXT


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.