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M08-34

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16 Sep 2014, 00:38
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78% (00:51) correct 22% (01:17) wrong based on 152 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.

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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
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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.
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Joined: 02 Sep 2009
Posts: 50058

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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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19 Feb 2016, 06:26
Hi,
How is it x-y?
X+Y=M right ? Both invested amount x and Y in bond M.
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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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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
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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.
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03 Nov 2017, 04:47
I think this is a high-quality question and I agree with explanation.
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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
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24 Dec 2017, 00:14
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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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19 Jun 2018, 11:42
While the option D is correct, I think there is a slight error in your interpretation of option B

You have written 0.2x - 0.2 y = 40

This is wrong because the question says "40 more" and not "just 40"

Hence
0.2x - 0.4 y = 40 + (0.12x - 0.12y)

0.08 x - 0.08 y = 40
Hence x - y = 500 and not 200

Please let me know if I am wrong
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Posts: 50058

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19 Jun 2018, 21:51
RahulS90 wrote:
While the option D is correct, I think there is a slight error in your interpretation of option B

You have written 0.2x - 0.2 y = 40

This is wrong because the question says "40 more" and not "just 40"

Hence
0.2x - 0.4 y = 40 + (0.12x - 0.12y)

0.08 x - 0.08 y = 40
Hence x - y = 500 and not 200

Please let me know if I am wrong

Yes, you are wrong.

(2) If the interest were 20% then in one year Jules would have earned $40 more than Jim from bond M. If the interest were 20% then in one year Jules would have earned 0.2x If the interest were 20% then in one year Jules would have earned 0.2y Jules would have earned$40 more than Jim, so 0.2x = 0.2y + 40, which is the same as 0.2x - 0.2y = 40.
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Re: M08-34 &nbs [#permalink] 19 Jun 2018, 21:51
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