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# Robin split a total of $24,000 between two investments, X and Y. If in SORT BY: Tags: Show Tags Hide Tags Manager Joined: 27 Jun 2007 Posts: 103 Own Kudos [?]: 341 [33] Given Kudos: 0 Tutor Joined: 12 Oct 2010 Status:GMATH founder Posts: 891 Own Kudos [?]: 1428 [1] Given Kudos: 56 Tutor Joined: 04 Aug 2010 Posts: 1330 Own Kudos [?]: 3253 [0] Given Kudos: 9 Schools:Dartmouth College Director Joined: 14 Jul 2010 Status:No dream is too large, no dreamer is too small Posts: 958 Own Kudos [?]: 5028 [3] Given Kudos: 690 Concentration: Accounting Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
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RyanDe680 wrote:
Robin split a total of $24,000 between two investments, X and Y. If investment Y earns 7 percent simple annual interest, how much of the total did Robin put into investment Y ? (1) Each investment earns the same dollar amount of interest annually. (2) Investment X earns 5 percent simple annual interest. X+Y=24000 X=24000-Y Interest = X+0.07Y (1) But not rate for x is given. (2) No relation between X and Y is given. Considering both: 0.05(24000-y)=0.07Y Sufficient. The answer is C Senior Manager Joined: 16 Nov 2021 Posts: 472 Own Kudos [?]: 28 [0] Given Kudos: 5901 Location: United Kingdom Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
RyanDe680 wrote:
Robin split a total of $24,000 between two investments, X and Y. If investment Y earns 7 percent simple annual interest, how much of the total did Robin put into investment Y ? (1) Each investment earns the same dollar amount of interest annually. (2) Investment X earns 5 percent simple annual interest. Hi BrentGMATPrepNow, Could you share your insights on this one please? Thanks for your time in advanced. Senior Manager Joined: 16 Nov 2021 Posts: 472 Own Kudos [?]: 28 [0] Given Kudos: 5901 Location: United Kingdom Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
GMATGuruNY wrote:
RyanDe680 wrote:
Robin split a total of $24,000 between 2 investments, X and Y. If investment Y earns 7% simple annual interest, how much of that total did Robin put into investment Y? (1) Each investment earns the same dollar amount of the interest annually. (2) Investment X earns 5 percent simple annual interest. Statement 1: Test one case that also satisfies Statement 2. Case 1: X = 5% and Y = 7% For 5% interest and 7% percent interest to yield the same dollar amount,$7 must be invested at 5% interest for every $5 invested at 7% interest: X -->$7(0.05) = $0.35. Y -->$5(0.07) = $0.35. Thus: $$\frac{X}{Y} = \frac{7}{5}$$, implying that $$\frac{5}{12}$$ of the$24,000 must be invested in Y:
$$\frac{5}{12} * 24,000 = 10,000$$

Test one case that does NOT also satisfy Statement 2.
Case 2: X = 3% and Y = 7%
For 3% interest and 7% percent interest to yield the same dollar amount,
$7 must be invested at 3% interest for every$3 invested at 7% interest:
X --> $7(0.03) =$0.21.
Y --> $3(0.07) =$0.21.
Thus:
$$\frac{X}{Y} = \frac{7}{3}$$, implying that $$\frac{3}{10}$$ of the $24,000 must be invested in Y: $$\frac{3}{10}* 24,000 = 7200$$ Since the amount invested in Y can be different values, INSUFFICIENT. Statement 2: Here, the amount invested in Y can be any monetary value between$0 and $24,000. INSUFFICIENT. Statements combined: Only Case 1 satisfies both statements. In Case 1, the amount invested in Y = 10,000. SUFFICIENT. Hi GMATGuruNY, straightforward explanantion but one question not sure how and why is$7/$5 turn into 5/12 please? Thanks Senior Manager Joined: 16 Nov 2021 Posts: 472 Own Kudos [?]: 28 [0] Given Kudos: 5901 Location: United Kingdom Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
MHIKER wrote:
RyanDe680 wrote:
Robin split a total of $24,000 between two investments, X and Y. If investment Y earns 7 percent simple annual interest, how much of the total did Robin put into investment Y ? (1) Each investment earns the same dollar amount of interest annually. (2) Investment X earns 5 percent simple annual interest. X+Y=24000 X=24000-Y Interest = X+0.07Y (1) But not rate for x is given. (2) No relation between X and Y is given. Considering both: 0.05(24000-y)=0.07Y Sufficient. The answer is C Hi MHIKER, not quite understand the reasonging behind Interest = X+0.07Y ? Could you kindly help clarify? Thanks a bunch Tutor Joined: 04 Aug 2010 Posts: 1330 Own Kudos [?]: 3253 [0] Given Kudos: 9 Schools:Dartmouth College Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
Kimberly77 wrote:
[Hi GMATGuruNY, straightforward explanantion but one question not sure how and why is $7/$5 turn into 5/12 please? Thanks

Ratio investment for X and Y:
$$\frac{X}{Y} = \frac{7}{5}$$
Implication:
Of every $12 that is invested,$7 is invested in X, while $5 is invested in Y. Since Y constitutes$5 of every $12 that is invested, the amount invested in Y must be 5/12 of the total$24,000 investment:
$$Y = \frac{5}{12} * 24,000 = 10,000$$
Senior Manager
Joined: 16 Nov 2021
Posts: 472
Own Kudos [?]: 28 [0]
Given Kudos: 5901
Location: United Kingdom
Re: Robin split a total of $24,000 between two investments, X and Y. If in [#permalink] GMATGuruNY wrote: Kimberly77 wrote: [Hi GMATGuruNY, straightforward explanantion but one question not sure how and why is$7/$5 turn into 5/12 please? Thanks Ratio investment for X and Y: $$\frac{X}{Y} = \frac{7}{5}$$ Implication: Of every$12 that is invested, $7 is invested in X, while$5 is invested in Y.
Since Y constitutes $5 of every$12 that is invested, the amount invested in Y must be 5/12 of the total $24,000 investment: $$Y = \frac{5}{12} * 24,000 = 10,000$$ Brilliant and crystal clear now, thanks GMATGuruNY for your prompt reply. Non-Human User Joined: 09 Sep 2013 Posts: 34222 Own Kudos [?]: 857 [0] Given Kudos: 0 Re: Robin split a total of$24,000 between two investments, X and Y. If in [#permalink]
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Re: Robin split a total of \$24,000 between two investments, X and Y. If in [#permalink]
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