MathRevolution wrote:

[GMAT math practice question]

John invested \(\frac{1}{4}\) of A dollars in an investment fund, and placed the remaining \(\frac{3}{4}\) of A dollars in a savings account. If he made a 4p% loss on the fund, and a p% profit on the savings account, what was his total profit (or loss), in terms of A and p? (A negative value represents a loss.)

\(A. \frac{–Ap}{400}\)

\(B. 0\)

\(C. \frac{Ap}{400}\)

\(D. \frac{Ap}{200}\)

\(E. \frac{Ap}{100}\)

Let \(A=40\)

Amount invested in the fund = \(\frac{1}{4} * 40 = 10\)

Since \(4p = 4*10 = 40\), John loses 40% of his investment in the fund:

Loss = \(\frac{40}{100}(10) = -4\)

Amount placed in the savings account = \(40-10=30\)

Since \(p=10\), John earns 10% of the amount placed in the savings account:

Gain = \(\frac{10}{100}(30)= 3\)

Loss + Gain = \(-4+3 = -1\)

The correct answer must be NEGATIVE.

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