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# GMAT PREP 2

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Current Student
Joined: 11 May 2008
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24 Aug 2008, 01:21
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

why is C wrong?
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Manager
Joined: 20 May 2008
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24 Aug 2008, 02:37
Ra = Rate of A
Rb = Rate of B

Given Rb = (3/2)Ra

Ia = Interest A
Ib = Interest B

1 and 2 are insuff on their own. I guess thats obvious.

Taking both together,

I=P*T*R/100

Ia = Pa * 1 * * Ra/100
50 = Pa * 1 * Ra/100
Pa * Ra = 5000 ....... (1)

from statement 2, Pb = 2 * Pa

Ib = 2 * Pa * 1 * (3/2)*Ra/100
Ib = 150
we get, Pa * Ra = 5000 ..... (2)

1 and 2 are the same so this cannot be solved.
Ans is E

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Intern
Joined: 10 Aug 2008
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Schools: Emory Goizueta (Class of 2013)
WE 1: Management consultant
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24 Aug 2008, 08:54
Investment A pays an annual interest rate R
B pays 1.5R

(1) Insuf as:
A*R=50
B*1.5*R=150
2 equations but 3 variables

(2) Insuf as:
B=2A
1 equation but 2 variables

Combined: insuf as
(1): AR/(1.5BR)=1/3 -> A/B=1/2, which is the same as (2)

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Re: GMAT PREP 2   [#permalink] 24 Aug 2008, 08:54
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