GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 14 Nov 2018, 07:46

### 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

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

## Events & Promotions

###### Events & Promotions in November
PrevNext
SuMoTuWeThFrSa
28293031123
45678910
11121314151617
18192021222324
2526272829301
Open Detailed Calendar
• ### $450 Tuition Credit & Official CAT Packs FREE November 15, 2018 November 15, 2018 10:00 PM MST 11:00 PM MST EMPOWERgmat is giving away the complete Official GMAT Exam Pack collection worth$100 with the 3 Month Pack ($299) • ### Free GMAT Strategy Webinar November 17, 2018 November 17, 2018 07:00 AM PST 09:00 AM PST Nov. 17, 7 AM PST. Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT. # On January 1, 2010, Dave invests 70% of his retirement savings in Anta  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: ### Hide Tags Math Expert Joined: 02 Sep 2009 Posts: 50583 On January 1, 2010, Dave invests 70% of his retirement savings in Anta [#permalink] ### Show Tags 29 Apr 2015, 03:09 1 7 00:00 Difficulty: 95% (hard) Question Stats: 46% (03:40) correct 54% (03:30) wrong based on 194 sessions ### HideShow timer Statistics On January 1, 2010, Dave invests 70% of his retirement savings in Antarctic largecap stocks, 20% in Antarctic midcaps, and 10% in Antarctic smallcaps. In 2010, largecaps rise 5%, midcaps rise 10%, and smallcaps rise 15% in the Antarctic stock market; however, in 2011, largecaps fall 10% and midcaps fall 20%, while smallcaps rise x% in Antarctica. If, on January 1, 2012, Dave has the same total amount of retirement savings as he did two years before, then x is between A. 10 and 20 B. 20 and 30 C. 30 and 40 D. 40 and 50 E. 50 and 60 Kudos for a correct solution. _________________ Retired Moderator Joined: 06 Jul 2014 Posts: 1241 Location: Ukraine Concentration: Entrepreneurship, Technology GMAT 1: 660 Q48 V33 GMAT 2: 740 Q50 V40 Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta [#permalink] ### Show Tags 29 Apr 2015, 07:00 1 1 Bunuel wrote: On January 1, 2010, Dave invests 70% of his retirement savings in Antarctic largecap stocks, 20% in Antarctic midcaps, and 10% in Antarctic smallcaps. In 2010, largecaps rise 5%, midcaps rise 10%, and smallcaps rise 15% in the Antarctic stock market; however, in 2011, largecaps fall 10% and midcaps fall 20%, while smallcaps rise x% in Antarctica. If, on January 1, 2012, Dave has the same total amount of retirement savings as he did two years before, then x is between A. 10 and 20 B. 20 and 30 C. 30 and 40 D. 40 and 50 E. 50 and 60 Kudos for a correct solution. Let's $$s$$ be common savings, than $$large = 0.7s*1.05*0.9 = 0.66s$$ $$middle = 0.2s*1.1*0.8=0.17s$$ $$small = 0.1s*1.15*x = 0.12sx$$ and we can make equation $$large + middle + small = s$$ $$0.66s + 0.17s + 0.12sx = s$$ $$0.12sx = 0.17s$$ $$x = 1.41$$ So x = 41% Answer is D _________________ Manager Joined: 27 Dec 2013 Posts: 249 Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta [#permalink] ### Show Tags 29 Apr 2015, 08:52 Hi Harley.. Even I got the answer as D, but the percentage I got was around 47 %. Harley1980 wrote: Bunuel wrote: On January 1, 2010, Dave invests 70% of his retirement savings in Antarctic largecap stocks, 20% in Antarctic midcaps, and 10% in Antarctic smallcaps. In 2010, largecaps rise 5%, midcaps rise 10%, and smallcaps rise 15% in the Antarctic stock market; however, in 2011, largecaps fall 10% and midcaps fall 20%, while smallcaps rise x% in Antarctica. If, on January 1, 2012, Dave has the same total amount of retirement savings as he did two years before, then x is between A. 10 and 20 B. 20 and 30 C. 30 and 40 D. 40 and 50 E. 50 and 60 Kudos for a correct solution. Let's $$s$$ be common savings, than $$large = 0.7s*1.05*0.9 = 0.66s$$ $$middle = 0.2s*1.1*0.8=0.17s$$ $$small = 0.1s*1.15*x = 0.12sx$$ and we can make equation $$large + middle + small = s$$ $$0.66s + 0.17s + 0.12sx = s$$ $$0.12sx = 0.17s$$ $$x = 1.41$$ So x = 41% Answer is D _________________ Kudos to you, for helping me with some KUDOS. Retired Moderator Joined: 06 Jul 2014 Posts: 1241 Location: Ukraine Concentration: Entrepreneurship, Technology GMAT 1: 660 Q48 V33 GMAT 2: 740 Q50 V40 Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta [#permalink] ### Show Tags 29 Apr 2015, 09:00 shriramvelamuri wrote: Hi Harley.. Even I got the answer as D, but the percentage I got was around 47 %. I think that's mean that I or you have made a mistake. If you write your way of solving we can check _________________ Math Expert Joined: 02 Sep 2009 Posts: 50583 Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta [#permalink] ### Show Tags 04 May 2015, 03:15 1 3 Bunuel wrote: On January 1, 2010, Dave invests 70% of his retirement savings in Antarctic largecap stocks, 20% in Antarctic midcaps, and 10% in Antarctic smallcaps. In 2010, largecaps rise 5%, midcaps rise 10%, and smallcaps rise 15% in the Antarctic stock market; however, in 2011, largecaps fall 10% and midcaps fall 20%, while smallcaps rise x% in Antarctica. If, on January 1, 2012, Dave has the same total amount of retirement savings as he did two years before, then x is between A. 10 and 20 B. 20 and 30 C. 30 and 40 D. 40 and 50 E. 50 and 60 Kudos for a correct solution. MANHATTAN GMAT OFFICIAL SOLUTION: The difficulty of this “percent change” problem is not so much conceptual as it is “executional”—you want to be able to solve it quickly, easily, and of course accurately. Let’s get to the workout! You’ve got three investments (at various percent allocations) changing by various other percents over two time periods. The numbers don’t look too ugly, but you might suspect that the result will be hard to compute exactly, because the problem only asks for a range. Thus, you should be ready to switch to estimation at some point. Pick a smart number for the total retirement savings Dave starts with—say,$10,000. (If you pick $100, you’ll wind up needing to track decimals, so give yourself a couple more zeros to start with.) Here are the starting values: L =$7,000
M = $2,000 S =$1,000

Apply the first year’s changes, so that you have these numbers on 1/1/2011:

Newer L = $7,000 + 5% =$7,350
Newer M = $2,000 + 10% =$2,200
Newer S = $1,000 + 15% =$1,150

Now apply the second year’s changes to L and M:

Newest L = $7,350 – 10% =$7,350 – $735 =$6,615
Newest M = $2,200 – 20% =$2,200 – $440 =$1,760

Add these to get $8,375. So the newest S must be$10,000 (the target final total of Dave’s retirement savings) minus $8,375, or$1,625.

The dollar change in S from 1/1/11 to 1/1/12 is $1,625 –$1,150 = $475. So the question is this: what percent change does$475 represent, from a starting point of $1,150? Since$1,150 is a nasty divisor, switch to benchmarks:

10% of $1,150 =$115.

So 20% is just double that, or $230. And 40% is double that, or$460.

Since $475 is just slightly larger than$460 (but not enough to get you to 50%, which would be $460 +$115), x must be between 40 and 50.

Intuitively, it should make sense that you’d need a much bigger positive percent change in the smallest investment (S) to make up for even a moderate downturn in the larger investments (L and M), so if you were completely stuck for time and needed to guess in a hurry, you should favor C/D/E over A or B.

The correct answer is D.
_________________
Intern
Joined: 25 Apr 2015
Posts: 7
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta  [#permalink]

### Show Tags

10 May 2015, 04:27
Let's s be common savings, than
large=0.7s∗1.05∗0.9=0.66s
middle=0.2s∗1.1∗0.8=0.17s
small=0.1s∗1.15∗x=0.12sx

and we can make equation
large+middle+small=s
0.66s+0.17s+0.12sx=s
0.12sx=0.17s
x=1.41

So x = 41%

Understood the concept. But can someone please tell me why the value of large stocks 0.66s is not added to 0.17 ?
Intern
Joined: 17 Mar 2014
Posts: 1
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta  [#permalink]

### Show Tags

24 Jun 2015, 13:25
I conceptually understand this problem, however the rounding taken place in this problem causes me to get answer C (I rounded up the medium stock calculation).

Ex: medium stock = 0.2s*(1.1)*(0.8) = .176s

If you round this number down you get and answer D.

Can someone please give me some insight on this problem?
Retired Moderator
Joined: 06 Jul 2014
Posts: 1241
Location: Ukraine
Concentration: Entrepreneurship, Technology
GMAT 1: 660 Q48 V33
GMAT 2: 740 Q50 V40
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta  [#permalink]

### Show Tags

24 Jun 2015, 13:48
foster22 wrote:
I conceptually understand this problem, however the rounding taken place in this problem causes me to get answer C (I rounded up the medium stock calculation).

Ex: medium stock = 0.2s*(1.1)*(0.8) = .176s

If you round this number down you get and answer D.

Can someone please give me some insight on this problem?

Hello foster22

If you want make precise calculations you should make it in all calculations:

large=$$0.7s∗1.05∗0.9=0.6615s$$
middle=$$0.2s∗1.1∗0.8=0.176s$$
small=$$0.1s∗1.15∗x=0.115sx$$

large+middle+small=s

$$0.6615s+0.176s+0.115sx=s$$
$$0.115sx=0.1625s$$
$$x=1.41$$
_________________
Manager
Joined: 25 May 2016
Posts: 78
Location: Singapore
Concentration: Finance, General Management
GMAT 1: 620 Q46 V30
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta  [#permalink]

### Show Tags

21 Jul 2018, 05:56
How can you solve this within 2mins? It took me ard 3.5mins.
_________________

5 Kudos left to unlock next level. Help me by Contributing one for cause .. Please

Manick9

If you found my post helpful, kindly press "+1 Kudos" to appreciate

Senior Manager
Joined: 20 Sep 2016
Posts: 422
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta  [#permalink]

### Show Tags

28 Jul 2018, 06:18
My approach :
step 1 :L = $70 M =$20
S = $10 Apply the first year’s changes, so that you have these numbers on 1/1/2011: Newer L =$7,0 + 5% = $73.5 Newer M =$2,0 + 10% = $22 Newer S =$1,0 + 15% = \$11.5

step 2:
Now as per the info the resultant is same ie 100

.9*73.5 +.8*22 + (100+x/100 )11.5 = 100
therefore>>approx values:
<67 + < 16 + >11.5 =100
therefore :
67+16 + >11.5= 100
(100+x/100)11.5 =17

then i approximated that it must lie between 40-50 as greater than 50 would go higher than 17.
Bunuel chetan2u . Is my approach right?
Re: On January 1, 2010, Dave invests 70% of his retirement savings in Anta &nbs [#permalink] 28 Jul 2018, 06:18
Display posts from previous: Sort by

# On January 1, 2010, Dave invests 70% of his retirement savings in Anta

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

 Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne 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®.