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# Barbara invested a portion of savings at 7 percent simple interest

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Senior Manager
Joined: 25 Dec 2018
Posts: 305
Location: India
Concentration: General Management, Finance
GMAT Date: 02-18-2019
GPA: 3.4
WE: Engineering (Consulting)
Barbara invested a portion of savings at 7 percent simple interest  [#permalink]

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06 Apr 2019, 05:56
1
00:00

Difficulty:

35% (medium)

Question Stats:

64% (01:11) correct 36% (01:13) wrong based on 28 sessions

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Barbara invested a portion of savings at 7 percent simple interest and the remaining savings she invested at x percent compound interest. What amount did Barbara invest at 7 percent simple interest?

(1) The total savings Barbara had was $4,000. (2) The total interest earned from the two investment in the first year =$500.
Director
Joined: 18 Jul 2018
Posts: 906
Location: India
Concentration: Finance, Marketing
WE: Engineering (Energy and Utilities)
Barbara invested a portion of savings at 7 percent simple interest  [#permalink]

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07 Apr 2019, 11:11
SI = 7%
CI = x%

From S1:

Total savings in 4000$. We don't know the time period and also the CI. Hence Insufficient. From S2: Interest earned from both is 500$.
But, we don't know the Principal Amount.
Hence Insufficient.

Combining both:

P = 4000$SI+CI = 500$
Time = 1 year.
Let the amount invested in Simple interest be 4000-a.
Then the amount invested in Compound interest is a.

$$\frac{(4000-a)*1*7}{100}+a([1+\frac{x}{100}]^1-1)$$
Still, two unknown variables.
Hence Insufficient.

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Barbara invested a portion of savings at 7 percent simple interest   [#permalink] 07 Apr 2019, 11:11
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