It is currently 28 Jun 2017, 18:04

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Loan X has a principal of $10,000x and a yearly simple inter

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
3 KUDOS received
Intern
Intern
avatar
Joined: 24 Sep 2011
Posts: 17
Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 07 Aug 2013, 12:36
3
This post received
KUDOS
13
This post was
BOOKMARKED
Loan X has a principal of $10,000x and a yearly simple interest rate of 4%. Loan Y has a principal of $10,000y and a yearly simple interest rate of 8%. Loans X and Y will be consolidated to form Loan Z with a principal of $(10,000x + 10,000y) and a yearly simple interest rate of r%, where r = (4x+8y)/(x+y). In the table, select a value for x and a value for y corresponding to a yearly simple interest rate of 5% for the consolidated loan. Make only two selections, one in each column.

..........X..........Y..........Value
(A)..............................21
(B)..............................32
(C)..............................51
(D)..............................64
(E)..............................81
(F)..............................96


[Reveal] Spoiler:
X=(F), Y=(B)


Can someone please explain how to solve this?
25 KUDOS received
Intern
Intern
avatar
Joined: 25 Jul 2012
Posts: 11
Concentration: Finance, Entrepreneurship
GPA: 3.56
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 07 Aug 2013, 14:49
25
This post received
KUDOS
12
This post was
BOOKMARKED
You have X amount of 4% interest rate and Y amount of 8%. After consolidating these two deposits, the formula to find the new interest rate(r%) of the consolidated amounts is:

r= (4x+8y)/(x+y)

the problem indicates the new interest rate(r%) of the mix is 5%
substituting r with 5,we get:

5=(4x+8y)/(x+y)

5x+5y=4x+8y

x=3y

After you get the above equation, you just need to look at your options for an x that is 3 times of y.
Y=32 X=96

Hope my first post helps.
Intern
Intern
avatar
Joined: 19 May 2012
Posts: 35
Location: India
Concentration: International Business, Healthcare
GMAT Date: 03-03-2014
WE: Information Technology (Computer Software)
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 08 Aug 2013, 08:55
easy one....agree with the given solution....:)
_________________

Thanks
crazy4priya
GMATPrep 1 710/Q49/V38
GMATPrep 2 690/Q49/V34
Veritas Prep 700/Q50/V36/IR5
MGMT Test 1 700/Q51/V35/IR3

Expert Post
5 KUDOS received
Veritas Prep GMAT Instructor
User avatar
Joined: 11 Dec 2012
Posts: 313
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 08 Aug 2013, 11:24
5
This post received
KUDOS
Expert's post
2
This post was
BOOKMARKED
ksung84 wrote:
Loan X has a principal of $10,000x and a yearly simple interest rate of 4%. Loan Y has a principal of $10,000y and a yearly simple interest rate of 8%. Loans X and Y will be consolidated to form Loan Z with a principal of $(10,000x + 10,000y) and a yearly simple interest rate of r%, where r = (4x+8y)/(x+y). In the table, select a value for x and a value for y corresponding to a yearly simple interest rate of 5% for the consolidated loan. Make only two selections, one in each column.

..........X..........Y..........Value
(A)..............................21
(B)..............................32
(C)..............................51
(D)..............................64
(E)..............................81
(F)..............................96


[Reveal] Spoiler:
X=(F), Y=(B)


Can someone please explain how to solve this?


This Integrated Reasoning Two-Part Analysis question can be broken down into a standard weighted-average question. Forgetting the 10,000 constant (which is only there to confuse you), you need to find the weighted average of x (4%) and y (8%) that comes up to 5%. The algebraic solution above is good, but you can also solve this through logic if you preferred. X brings down the average by 1, Y brings up the average by 3. Obviously there need to be more x's than y's, because the weighted average is closer to x. Hence we need 3 x's for every 1 y to end up at the weighted average given.

From there, you have to find answer choices that have a 3 to 1 ratio. Since there could be an infinite number of solutions, you know the GMAT will only give you one option among the answer choices that works. In this case 32 and 96. Again you need more x's than y's, so x is 96 and y is 32.

Quick takeaway here is that most of the concepts that you study for the GMAT are applied on the IR section as well. There isn't much new content to study (basically just graphics analysis), but sometimes you need to apply familiar concepts in new ways.

Hope this helps!
-Ron
_________________

Ron Awad
Veritas Prep | GMAT Instructor
Save $100 on Veritas Prep GMAT Courses and Admissions Consulting Services
Veritas Prep Reviews

Senior Manager
Senior Manager
User avatar
Joined: 15 Oct 2015
Posts: 376
Concentration: Finance, Strategy
GPA: 3.93
WE: Account Management (Education)
GMAT ToolKit User
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 18 Dec 2015, 02:37
ozhan wrote:
You have X amount of 4% interest rate and Y amount of 8%. After consolidating these two deposits, the formula to find the new interest rate(r%) of the consolidated amounts is:

r= (4x+8y)/(x+y)

the problem indicates the new interest rate(r%) of the mix is 5%
substituting r with 5,we get:

5=(4x+8y)/(x+y)

5x+5y=4x+8y

x=3y

After you get the above equation, you just need to look at your options for an x that is 3 times of y.
Y=32 X=96

Hope my first post helps.


NOW THAT NAILED IT. BY MERELY LOOKING AT THE QUESTION, WITHOUT SOLVING, YOU MIGHT NOTICE SOMETHING WITH 32 AND 98 AND 4 AND 8. BUT THEN YOU HAD TO SOLVE TO FIND OUT WHICH IS FOR WHICH SIDE.
Intern
Intern
avatar
Joined: 16 Apr 2015
Posts: 34
Premium Member
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 27 Dec 2015, 10:24
lot of verbiage but as other have said easy, only thing to be solved that equation by setting it equal to 5%.
I agree with solution provided
Intern
Intern
avatar
Joined: 31 Jan 2016
Posts: 1
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 31 Jan 2016, 12:35
Very simple after seeing the answer

I made the mistake to set up the equation as such:

4x+8y / x +y = .05

Can someone explain why you set r = 5 and not r = .05 in this case?
Expert Post
2 KUDOS received
EMPOWERgmat Instructor
User avatar
G
Status: GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 9292
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: 340 Q170 V170
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 04 Feb 2016, 23:32
2
This post received
KUDOS
Expert's post
1
This post was
BOOKMARKED
Hi Frank22Times,

When deciding on how to represent an interest rate, you have to pay careful attention to what the prompt tells you.

If you were trying to calculate a basic interest, then you would almost certainly use a decimal point.

For example, 10% on a $200 load is (.10)($200) = $20

In this question though, we're told that a loan has an interest rate of R%. Notice how the % sign is already there - that means we should NOT use a decimal point. When we're told that R = (4x+8y)/(x+y), we're performing the specific calculation that's described in the prompt, so we need to use R=5 (and not R=.05).

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

760+: Learn What GMAT Assassins Do to Score at the Highest Levels
Contact Rich at: Rich.C@empowergmat.com

Rich Cohen

Co-Founder & GMAT Assassin

Special Offer: Save $75 + GMAT Club Tests

60-point improvement guarantee
www.empowergmat.com/

***********************Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!***********************

Senior Manager
Senior Manager
User avatar
Joined: 17 Jun 2015
Posts: 263
GMAT 1: 540 Q39 V26
GMAT 2: 680 Q46 V37
GMAT ToolKit User
Re: Loan X has a principal of $10,000x and a yearly simple inter [#permalink]

Show Tags

New post 26 Sep 2016, 00:27
Weighted averages method is the best way to approach this questions.

W1/W2 = (A2 - Average)/(Average - A1)

This gives the ratio to be 3:1

32 and 96
_________________

Fais de ta vie un rêve et d'un rêve une réalité

Re: Loan X has a principal of $10,000x and a yearly simple inter   [#permalink] 26 Sep 2016, 00:27
    Similar topics Author Replies Last post
Similar
Topics:
1 Experts publish their posts in the topic If one of the loans in the survey is considered at random iqahmed83 4 13 Apr 2017, 19:33
3 Radhika is refinancing a business loan wadbarzain 4 04 Aug 2016, 04:39
1 GMAT PREP - Our new 15/12 discount loan saikrishna123 2 13 Oct 2014, 02:05
6 The World Health Organization (WHO) has maybeam 7 01 Nov 2016, 10:15
6 Experts publish their posts in the topic Simple IR question - Table Analysis egmat 15 06 May 2013, 19:00
Display posts from previous: Sort by

Loan X has a principal of $10,000x and a yearly simple inter

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.