Jackson invested $300,000, dividing it all unequally between Account P

Question

Jackson invested $300,000, dividing it all unequally between Account P and Account Q. At the end of the year, it turned out that Account P had earned 12% interest and Account Q had earned 25% interest. If Jackson earned a total of $60,000 in interest between the two accounts, which of the following is approximately the amount he put in account P?

A. $115,384
B. $120,000
C. $121,072
D. $124,129
E. $130,000

Kudos for a correct solution.

A. $115,384
B. $120,000
C. $121,072
D. $124,129
E. $130,000

ynaikavde · Answer

x be the amount invested in account P

0.12*x +(300000-x)*0.25=60,000
15000/.13=x
x=1500000/13=11...=$115,384

hence answer is A

KS15 · Answer

+1 for A. Assume amount invested @12%=x and @25%=300,000-x
Then, (x*12/100)+(300,000-x)*25/100=60000
Solving for x, x=15000/.13=$115,384

PareshGmat · Answer

Answer = A. $115,384

Let "x" be invested in scheme P

\frac{12x}{100} + \frac{25}{100}(300000-x) = 60000

x = \frac{15*10^5}{13} = 115***

EMPOWERgmatRichC · Answer

Hi All,

This question is essentially just a Weighted Average question that involves deposits into 2 bank accounts.

We're given a set of facts to work with:
1) The interest on Account P is 12%
2) The interest on Account Q is 25%
3) The total deposit was $300,000
4) The total interest was $60,000

We're asked for the APPROXIMATE amount that was deposited into Account P.

Since the total interest is $60,000, that represents a 20% overall return (since 60,000/300,000 = .2)

P = dollars deposited into Account P
Q = dollars deposited into Account Q

Now we can set up a Weighted Average formula

(.12P + .25Q)/(P+Q) = .20

.12P + .25Q = .2P + .2Q
.05Q = .08P
5Q = 8P
5/8 = P/Q

This means that for every 5 dollars deposited into Account P, 8 dollars was deposited into Account Q. By extension, for every 13 dollars deposited in total, 5 of those dollars were deposited into Account P.

5/13 = X/300,000

13X = 1,500,000

While this calculation will not be "nice", the answer choices are sufficiently 'spread out' that we won't have to do the entire calculation:

1,500,000/13 = 11 _ , _ _ _

At this point, we can stop working. The correct answer must begin with 11......

Final Answer:  A

GMAT assassins aren't born, they're made,
Rich

exc4libur · Answer

(300-a)0.25+a0.12=60
75-0.25a+0.12a=60
a=-15/-.13=1500/13~115

Ans (A)

ScottTargetTestPrep · Answer

We can let p = the amount in Account P and q = the amount in Account Q. We can create the equations:

p + q = 300,000

and

0.12p + 0.25q = 60,000

Multiplying the second equation by 4, we have:

0.48p + q = 240,000

Subtracting this equation from the first equation, we have:

0.52p = 60,000

p = 60,000/0.52 ≈ 115,384

Answer: A

Camach700 · Answer

could not we solve this one with weighted average?

EMPOWERgmatRichC · Answer

Hi, Camach700,

Yes, you can set up the following Weighted Average formula (where P is the amount of money invested in account P and Q is the amount of money invested in Account Q):

(.12P + .25Q)/(P+Q) = .20

.12P + .25Q = .2P + .2Q
.05Q = .08P
5Q = 8P
5/8 = P/Q

This means that for every 5 dollars deposited into Account P, 8 dollars was deposited into Account Q. By extension, for every 13 dollars deposited in total, 5 of those dollars were deposited into Account P.

5/13 = X/300,000

13X = 1,500,000

While this calculation will not be "nice", the answer choices are sufficiently 'spread out' that we won't have to do the entire calculation:

1,500,000/13 = 11 _ , _ _ _

At this point, we can stop working. The correct answer must begin with 11......

GMAT assassins aren't born, they're made,
Rich

BrentGMATPrepNow · Answer

We can solve the question using 1 variable or 2 variables. Let's use 1.

Let x = the money (in dollars) placed in Account P
So, $300,000 - x = the money placed in Account Q

Account P earned 12% interest and Account Q earned 25% interest, and Jackson earned a total of $60,000 in interest between the two accounts  
We can write: (12% of x) + (25% of 300,000 - x) = 60,000
In other words: 0.12x + 0.25(300,000 - x) = 60,000
Expand: 0.12x + 75,000 - 0.25x = 60,000
Simplify: -0.13x + 75,000 = 60,000
Subtract 75,000 from both sides: -0.13x = -15000
Solve: x = 15,000/0.13 ≈ 115,000

Answer: A

bumpbot · Answer

Automated notice from GMAT Club BumpBot: 

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

 This post was generated automatically.

Jackson invested $300,000, dividing it all unequally between Account P

Prep Toolkit

Top 5 GMAT Debrief Videos

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards

GMAT Problem Solving (PS) Questions

Jackson invested $300,000, dividing it all unequally between Account P

Prep Toolkit

615 to 715 in 15 Days (Ria's Strategies)

More than Quant/Verbal Abilities: Speed vs. Accuracy

745 with Only Self-Prep and GMAT Club

From 555 to 765: 210-point Improvement

Perfect 805 Score Debrief by Julia

My Rewards