Eric invests $A in project X at a simple interest of g

Question

Eric invests $A in project X at a simple interest of g percent. Eric also invests $B in project Y at a simple interest of h percent. Which is the better investment?

1. 0<A<B<2B
2. 0<2h<g

chaoswithin · Answer

This question's wording is confusing to be. Statement 1 show that 0 < A < B < 2B B < 2B is an obvious fact since B is already > 0. Also what constitutes a better investment? is it the greatest actual dollar return? because investing $1Mil at a rate of .11% would give higher greatest actual dollar return than investing $1,000 at a rate of 100%, but would you consider the $1Mil investment better? So assuming greatest actual dollar return equates into better investment, return on investment = ($ invested) (interest rate (in %) / 100) therefore the original statement asks is A * g > B * h ? Statement 1: 0 2h but since we have to information about the magnitude of the difference between A and B or g and h. Suppose A is 2 and B is 10 with g = 3% and h = 1% so A < B and g > 2h A*g = 6 < 10 = B*h But if A is 2 and B is 3 with g = 3% and h = 1%, A*g = 6 > 3 = B *h. Therefor insufficient. My answer is E. If Statement 1 said 0 < A < B < 2A then the answer would be C.

utfan2424 · Answer

What constitutes a good investment? The best return or the most dollars earned?

This is a poorly worded question.

Creeper300 · Answer

E sounds right, this looks like from one of the OG guides.

TehJay · Answer

I'm saying B, but only because I'm assuming "best investment" means "highest rate of return". This is a very poorly worded question.

Creeper300 · Answer

What if this question were rephrased as the following?

I. Eric invests $A in project X at a simple interest of g percent. Eric also invests $B in project Y at a simple interest of h percent. Which investment earns more interest?

1. 0<A<B<2B
2. 0<2h<g

II. Eric invests $A in project X at a simple interest of g percent. Eric also invests $B in project Y at a simple interest of h percent. Which investment earns more principal and interest?

1. 0<A<B<2B
2. 0<2h<g

KarishmaB · Answer

Question I Interest from project X = A*g/100 Interest from project Y = B*h/100 So the question is: which is greater A*g or B*h? Each statement alone is clearly insufficient Taken both together, A < B and g > 2h. Impossible to say whether Ag is greater or Bh because it depends on 'B is what percent greater than A?' g is more than twice of h. So, if B is less than twice of A, A*g will be greater e.g. If A = 100, g = 20 and B = 190, h = 9, then Ag = 2000 but Bh = 1710 On the other hand, if B is more than twice of A, we cannot say which of the two will be greater. e.g. A = 100, g = 20 and B = 210, h = 9, then Ag = 2000 and Bh = 1890 A = 100, g = 20 and B = 400, h = 9, then Ag = 2000 and Bh = 3600 Question II: I assume the question is which of them gives more amount at the end (principal + interest) We are comparing A + Ag with B + Bh or we can say we are comparing A(1 + g) with B(1 + h) The statements are still the same so either alone is not sufficient. Taking both together, we get A < B and g > 2h. Again it depends on 'B is what percent greater than A?' If A = 100, g = 20 and B = 200, h = 9, then A(1 + g) = 2100 and B(1 + h) = 2000 If A = 100, g = 20 and B = 210, h = 9, then A(1 + g) = 2100 and B(1 + h) = 2100 If A = 100, g = 20 and B = 220, h = 9, then A(1 + g) = 2100 and B(1 + h) = 2200

tingaling · Answer

My answer is E.
I. 
(1) insufficient since value of h and g is unknown so it's impossible to compare the interest earned. btw u can disregard B

case 2: 
 let A = 10 g=15
 B = 100 h=10

profit of A = $1.50
 profit of B = $10

therefore A B

Case 2: Principal + Profit of A = $11.5
 Principal + Profit of B = $110
 Therefore A<B

Eric invests $A in project X at a simple interest of g

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