GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

It is currently 07 Jul 2020, 21:43

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 trust of $45,000 was divided into three smaller trusts in the ratio

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

Hide Tags

Find Similar Topics 
SC Moderator
User avatar
V
Joined: 25 Sep 2018
Posts: 872
Location: United States (CA)
Concentration: Finance, Strategy
GPA: 3.97
WE: Investment Banking (Investment Banking)
Premium Member Reviews Badge CAT Tests
A trust of $45,000 was divided into three smaller trusts in the ratio  [#permalink]

Show Tags

New post 07 Mar 2019, 03:31
1
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

75% (03:06) correct 25% (03:07) wrong based on 16 sessions

HideShow timer Statistics

A trust of $45,000 was divided into three smaller trusts in the ratio 2:3:4. These trusts earned interest at 4%, 5%, and 6.5 %, respectively. The interest income earned after 1 year is approximately what percent of the starting value of the trust?
A) 6.25%
B) 6%
C) 5.5%
D) 5%
E) 4.75%

_________________
Math Expert
avatar
V
Joined: 02 Aug 2009
Posts: 8753
A trust of $45,000 was divided into three smaller trusts in the ratio  [#permalink]

Show Tags

New post 07 Mar 2019, 05:15
Abhi077 wrote:
A trust of $45,000 was divided into three smaller trusts in the ratio 2:3:4. These trusts earned interest at 4%, 5%, and 6.5 %, respectively. The interest income earned after 1 year is approximately what percent of the starting value of the trust?
A) 6.25%
B) 6%
C) 5.5%
D) 5%
E) 4.75%



We do not have to get into share of each ..
interest 4:5:6.5 for share in ratio 2:3:4..
\(Average = \frac{Total interest}{total share}=\frac{2*4+3*5+4*6.5}{2+3+4}=\frac{49}{9}=5.5\)

C

Also 2:3:4 and 4:5:6.5 can visually get you to the answer. 2:4 in ratio 4:6.5 means it has to be twice farther from 2 as from 4.. so \(4+\frac{(6.5-4)*2}{3}=4+1.6=5.6\)
so now we have (2+4):3 with interest 5.6:5... so again it has to be closer to 5.6 than 5, so 5.5 is the only available answer,
_________________
GMAT Club Bot
A trust of $45,000 was divided into three smaller trusts in the ratio   [#permalink] 07 Mar 2019, 05:15

A trust of $45,000 was divided into three smaller trusts in the ratio

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





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