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Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 05 Mar 2018, 20:39 00:00 Difficulty: 35% (medium) Question Stats: 74% (01:53) correct 26% (02:14) wrong based on 96 sessions ### HideShow timer Statistics 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 _________________ Math Expert Joined: 02 Sep 2009 Posts: 52905 Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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05 Mar 2018, 20:43
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

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Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 05 Mar 2018, 22:40 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%

$$0.05*2400 + 0.08*x = 0.06(2400 + x)$$ -> $$120 + 0.08x = 144 + 0.06x$$ -> $$0.02x = 24$$ -> $$x = \frac{2400}{2} = 1200$$
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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 06 Mar 2018, 00:59 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. Additional money=x Therefore, (6/100)*x+144=120+(8/100)*x Solving for x, x=1200 Answer E Target Test Prep Representative Status: Head GMAT Instructor Affiliations: Target Test Prep Joined: 04 Mar 2011 Posts: 2827 Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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08 Mar 2018, 10:37
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

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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 04 Oct 2018, 18:25 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. Final Answer: GMAT assassins aren't born, they're made, Rich _________________ 760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com # Rich Cohen Co-Founder & GMAT Assassin Special Offer: Save$75 + GMAT Club Tests Free
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Re: Barbara invests $2,400 in the National Bank at 5%. How much additiona [#permalink] ### Show Tags 27 Jan 2019, 05:44 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 CEO Joined: 11 Sep 2015 Posts: 3429 Location: Canada Re: Barbara invests$2,400 in the National Bank at 5%. How much additiona  [#permalink]

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27 Jan 2019, 06:13
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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, 06:13
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