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# M08-34

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Math Expert
Joined: 02 Sep 2009
Posts: 44400

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16 Sep 2014, 00:38
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Difficulty:

15% (low)

Question Stats:

75% (00:51) correct 25% (01:12) wrong based on 141 sessions

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Jules and Jim both invested certain amount of money in bond M for one year, which pays for 12% simple interest annually. If no other investment were made, then Jules initial investment in bond M was how many dollars more than Jim's investment in bond M.

(1) In one year Jules earned $24 more than Jim from bond M. (2) If the interest were 20% then in one year Jules would have earned$40 more than Jim from bond M.
[Reveal] Spoiler: OA

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Math Expert
Joined: 02 Sep 2009
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16 Sep 2014, 00:38
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Official Solution:

Question: $$x-y=?$$

(1) In one year Jules earned $24 more than Jim from bond M. $$0.12x-0.12y=24$$. Reduce by 0.12: $$x-y=200$$. Sufficient. (2) If the interest were 20% then in one year Jules would have earned$40 more than Jim from bond M. Basically the same type of information as above: $$0.2x-0.2y=40$$, reduce by 0.2: $$x-y=200$$. Sufficient.

Important note: when two quantities are increased (decreased) by the same percent their difference also increase (decrease) by the same percent. For example if you increase 100 and 150 by 20% to 120 and 180 respectively, then their difference will also increase by the same 20% from 50 to 60.

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Joined: 31 Jul 2014
Posts: 141
GMAT 1: 630 Q48 V29

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21 Sep 2015, 01:54
Bunuel wrote:
Official Solution:

Question: $$x-y=?$$

(1) In one year Jules earned $24 more than Jim from bond M. $$0.12x-0.12y=24$$. Reduce by 0.12: $$x-y=200$$. Sufficient. (2) If the interest were 20% then in one year Jules would have earned$40 more than Jim from bond M. Basically the same type of information as above: $$0.2x-0.2y=40$$, reduce by 0.2: $$x-y=200$$. Sufficient.

Important note: when two quantities are increased (decreased) by the same percent their difference also increase (decrease) by the same percent. For example if you increase 100 and 150 by 20% to 120 and 180 respectively, then their difference will also increase by the same 20% from 50 to 60.

Hi
Could you please confirm whether "earned" is just interest or orginal invested+interest?
Just in case if happened to problem solving.
In this DS it didnt matter though.
Math Expert
Joined: 02 Sep 2009
Posts: 44400

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21 Sep 2015, 02:13
Bunuel wrote:
Official Solution:

Question: $$x-y=?$$

(1) In one year Jules earned $24 more than Jim from bond M. $$0.12x-0.12y=24$$. Reduce by 0.12: $$x-y=200$$. Sufficient. (2) If the interest were 20% then in one year Jules would have earned$40 more than Jim from bond M. Basically the same type of information as above: $$0.2x-0.2y=40$$, reduce by 0.2: $$x-y=200$$. Sufficient.

Important note: when two quantities are increased (decreased) by the same percent their difference also increase (decrease) by the same percent. For example if you increase 100 and 150 by 20% to 120 and 180 respectively, then their difference will also increase by the same 20% from 50 to 60.

Hi
Could you please confirm whether "earned" is just interest or orginal invested+interest?
Just in case if happened to problem solving.
In this DS it didnt matter though.

Amount earned is just an interest earned.
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Intern
Joined: 03 Nov 2015
Posts: 1

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19 Feb 2016, 06:26
Hi,
How is it x-y?
X+Y=M right ? Both invested amount x and Y in bond M.
Math Expert
Joined: 02 Sep 2009
Posts: 44400

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19 Feb 2016, 08:37
P95 wrote:
Hi,
How is it x-y?
X+Y=M right ? Both invested amount x and Y in bond M.

Jules initial investment in bond M was how many dollars more than Jim's investment in bond M. Why should it be x + y?
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Manager
Joined: 03 Dec 2013
Posts: 70
Location: United States (HI)
GMAT 1: 660 Q49 V30
GPA: 3.56

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22 Aug 2016, 14:08
I think this is a high-quality question and I agree with explanation.
Intern
Joined: 22 Jan 2016
Posts: 12
Location: Thailand
Concentration: Finance, Statistics
GMAT 1: 640 Q46 V31
GMAT 2: 620 Q50 V25
GMAT 3: 650 Q50 V28
GPA: 2.89
WE: Accounting (Consulting)

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05 Sep 2016, 09:30
I thought this question want me to compare the initial amount of inv of one person to investment which is not initial amount of another.
Intern
Joined: 02 Mar 2017
Posts: 9

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03 Nov 2017, 04:47
I think this is a high-quality question and I agree with explanation.
Manager
Joined: 02 Jan 2017
Posts: 87
Location: Pakistan
Concentration: Finance, Technology
GMAT 1: 650 Q47 V34
GPA: 3.41

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23 Dec 2017, 17:52
Hi Bunnel
Could you post similar questions to this
and if you could also post theory related to this. It would be very helpful

Regards
Math Expert
Joined: 02 Sep 2009
Posts: 44400

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24 Dec 2017, 00:14
1
KUDOS
Expert's post
mtk10 wrote:
Hi Bunnel
Could you post similar questions to this
and if you could also post theory related to this. It would be very helpful

Regards

4. Percents and Iterest

For more check:
ALL YOU NEED FOR QUANT ! ! !

Hope it helps.
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Re: M08-34   [#permalink] 24 Dec 2017, 00:14
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# M08-34

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