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05 Mar 2018, 21:39
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35% (medium)

Question Stats:

73% (01:53) correct 27% (02:14) wrong based on 100 sessions

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Barbara invests $2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment? (A)$2,400

(B) $3,600 (C)$1,000

(D) $3,000 (E)$1,200

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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 05 Mar 2018, 21:43 Bunuel wrote: Barbara invests$2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment?

(A) $2,400 (B)$3,600

(C) $1,000 (D)$3,000

(E) $1,200 4. Percents and Iterest For more check: ALL YOU NEED FOR QUANT ! ! ! Ultimate GMAT Quantitative Megathread Hope it helps. _________________ Senior PS Moderator Joined: 26 Feb 2016 Posts: 3332 Location: India GPA: 3.12 Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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05 Mar 2018, 23:40
1
Bunuel wrote:
Barbara invests $2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment? (A)$2,400

(B) $3,600 (C)$1,000

(D) $3,000 (E)$1,200

If the interest earned is represented as follows
5-----------8
------6------
2-----------1

the investment must be done in the ratio 2:1

Therefore, we would need to invest $1200(Option E) at a rate of 8% so that the total annual income is 6% Alternate approach Let x be the amount invested at 8% $$0.05*2400 + 0.08*x = 0.06(2400 + x)$$ -> $$120 + 0.08x = 144 + 0.06x$$ -> $$0.02x = 24$$ -> $$x = \frac{2400}{2} = 1200$$ _________________ You've got what it takes, but it will take everything you've got Director Joined: 21 May 2013 Posts: 635 Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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06 Mar 2018, 01:59
Bunuel wrote:
Barbara invests $2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment? (A)$2,400

(B) $3,600 (C)$1,000

(D) $3,000 (E)$1,200

We need to have the equation as follows.
Therefore, (6/100)*x+144=120+(8/100)*x
Solving for x, x=1200
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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 08 Mar 2018, 11:37 Bunuel wrote: Barbara invests$2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment?

(A) $2,400 (B)$3,600

(C) $1,000 (D)$3,000

(E) $1,200 We can let x = the amount of money invested at 8%, making her entire investment equal to (2,400 + x). We can create the following equation: 0.05(2,400) + 0.08x = 0.06(2,400 + x) 120 + 0.08x = 144 + 0.06x 0.02x = 24 2x = 2400 x = 1,200 Answer: E _________________ # Jeffrey Miller Head of GMAT Instruction Jeff@TargetTestPrep.com 122 Reviews 5-star rated online GMAT quant self study course See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button. EMPOWERgmat Instructor Status: GMAT Assassin/Co-Founder Affiliations: EMPOWERgmat Joined: 19 Dec 2014 Posts: 15316 Location: United States (CA) GMAT 1: 800 Q51 V49 GRE 1: Q170 V170 Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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04 Oct 2018, 19:25
Hi All,

We're told that Barbara invests $2400 in the National Bank at 5%. We're asked how much additional money she must invest at 8% so that the TOTAL annual income will be equal to 6% of her TOTAL investment. This question can be solved in a couple of different ways, including by TESTing THE ANSWERS. To start, the$2400 invested at 5% would earn ($2400)(.05) =$120.

Since Barbara invested $2400 at 5%, IF she were to invest another$2400 at 7%, then the average return for the total investment would be exactly 6% (since the EQUAL investments at 5% and 7% would 'average out' to 6%. Here though, she's investing money at 8% - which means that she would NOT need $2400 invested there (she would need LESS than that, since the investment is at a higher rate). Thus, the answers are narrowed down to either$1000 or $1200. It's interesting that one of the two options is EXACTLY HALF of 2400.... Let's TEST Answer E =$1200
IF... $1200 were invested at 8%, then that investments would earn (1200)(.08) =$96
the total money invested would equal $2400 +$1200 = $3600 the total return on the investment would be$120 + $96 =$216

1% of $3600 =$36
6% of $3600 =$216
This is an exact match for what we were told, so this MUST be the answer.

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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 27 Jan 2019, 06:44 Bunuel wrote: Barbara invests$2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment?

(A) $2,400 (B)$3,600

(C) $1,000 (D)$3,000

(E) $1,200 Let´s use ALLIGATION, one powerful technique covered in our course! $$? = x$$ $${{2400} \over {2400 + x}} = {{8 - 6} \over {8 - 5}} = {{2 \cdot 1200} \over {3 \cdot 1200}}\,\,\,\,\, \Rightarrow \,\,\,\,\,? = x = 3 \cdot 1200 - 2400 = 1200$$ We follow the notations and rationale taught in the GMATH method. Regards, Fabio. _________________ Fabio Skilnik :: GMATH method creator (Math for the GMAT) Our high-level "quant" preparation starts here: https://gmath.net GMAT Club Legend Joined: 12 Sep 2015 Posts: 4019 Location: Canada Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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27 Jan 2019, 07:13
Top Contributor
Bunuel wrote:
Barbara invests $2,400 in the National Bank at 5%. How much additional money must she invest at 8% so that the total annual income will be equal to 6% of her entire investment? (A)$2,400

(B) $3,600 (C)$1,000

(D) $3,000 (E)$1,200

Barbara invests $2400 in the National Bank at 5%. So, her annual income for this investment = 5% of$2400 = $120 Let x = the additional money Barbara must invest at 8% So, her annual income for this investment = 8% of x = 0.08x So, Barbara's TOTAL annual income =$120 + 0.08x

We want the TOTAL annual income to be equal to 6% of her entire investment.
The TOTAL amount invested = $2400 + x So, we want her TOTAL annual income to equal 6% of ($2400 + x)
In other words, we want: Barbara's TOTAL annual income = 0.06($2400 + x) We now have the equation:$120 + 0.08x = 0.06($2400 + x) Expand right side: 120 + 0.08x = 144 + 0.06x Subtract 0.06x from both sides to get: 120 + 0.02x = 144 Subtract 120 from both sides to get: 0.02x = 24 Solve: x = 24/0.02 = 2400/2 = 1200 Answer: A Cheers, Brent _________________ Test confidently with gmatprepnow.com Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona   [#permalink] 27 Jan 2019, 07:13
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