GDT
Bunuel
maaadhu
Bunuel
If a loan of P dollars, at an interest rate of r percent per year compounded monthly, is payable in n monthly installments of m dollars each, then m is determined by the formula
John and Sue took out loans whose monthly installments were determined by using the formula above. Both loans had the same interest rate and the same number of monthly installments. John's monthly installment was what percent of Sue's monthly installment?Given that r and n are the same for John and Sue.
John's monthly installment was what percent of Sue's monthly installment? --> \(\frac{m_j}{m_j+m_s}=?\)
(1) The amount of Sue's loan was 4 times the amount of John's loan --> \(P_s=4*P_j\) --> \(\frac{m_j}{m_j+m_s}=\frac{P_j}{P_j+4P_j}=0.2\) (everything else get reduced). Sufficient.
(2) Sue's monthly installment was 4 times John's monthly installment --> \(\frac{m_j}{m_j+m_s}=\frac{m_j}{m_j+4m_j}=0.2\). Sufficient.
Answer: D.
Bunuel,
Isnt the question asking for
[ m(j)/m(s) ] * 100?
and thats 25%.
Please correct me if wrong
Yes, that's true. Though the solution would be almost the same.
VeritasKarishma,
MentorTutoringCan you pls clarify what Bunuel meant here in saying that solution would be almost same
Though, this is a DS question where we just need to look for sufficiency, if it were a PS question then 25% would be the answer
Kindly help with this
Thanks in advance!
Hello,
GDT. I cannot speak for
Bunuel, but the math checks out just fine. It appears as if the solution offered answers the question,
John's monthly installment was what percent of the combined monthly installment? John pays 1 part in 5, since Sue's payment is 4 times John's, so the J:S payment ratio is 1:4. Yes, the answer would be 25% in a PS question, although I will be honest and say that I was not worried about calculating an exact answer here. That is, if
r and
n are both constant, since they would represent the same values for John and Sue, that leaves only
P or
m as variables to consider, or those that can be manipulated. Statement (1) tells us about
P, allowing us to potentially solve the equation for
m, while statement (2) tells us about
m instead. This was a pretty quick (D) (although I cannot boast a speed read and sub-10-second answer, as someone claimed above).
Thank you for tagging me, and good luck with your studies.
- Andrew