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Vercules
Expert
Joined: 23 Dec 2010
Last visit: 07 Aug 2019
Posts: 440
Given Kudos: 82
Status:Making every effort to create original content for you!!
Location: United States
Concentration: Healthcare, Social Entrepreneurship
Schools: Kenan-Flagler '15 (A) McCombs '15 (I) Tepper '15 (M) Kellogg '15 (I) HBS '15 (D) Wharton '15 (D) Stern '15 (WL) Simon '15 (A)
GMAT 1: 660 Q48 V34
GMAT 2: 750 Q49 V42
Expert reply
Schools: Kenan-Flagler '15 (A) McCombs '15 (I) Tepper '15 (M) Kellogg '15 (I) HBS '15 (D) Wharton '15 (D) Stern '15 (WL) Simon '15 (A)
GMAT 2: 750 Q49 V42
Posts: 440
The Republic of Krovania’s development authority is planning to develop its nine underdeveloped cities. The authority wants to determine how much money each city needs to fund the upcoming development projects. The authority expects to fund the development projects through four sources of funding – state funding, collected in the form of taxes from its citizens; private funding, in the form of revenue generated by the private use of city owned infrastructure; donations from wealthy citizens; and Federal funding. The authority’s objective is to utilize the funding from State and Private Sources, while minimizing the dependency on Federal Sources.
A few cities have received generous donations from high net worth citizens; however, this money is not regular and thus excluded in calculating the funding for these long term development projects. A city is considered inadequately funded if its funding (excluding federal funding sources) covers less than 90% of the city’s projected development expenses. Any surplus funding from state and private sources are deposited in the federal pool of funds used for development projects for the nine cities and may be reallocated among the inadequately funded cities. After the surplus funds are allocated, the federal resources will be used to fund up to 10% for an adequately funded city’s expenses or the amount needed to reach 100% funding, whichever is smaller.
A few cities have received generous donations from high net worth citizens; however, this money is not regular and thus excluded in calculating the funding for these long term development projects. A city is considered inadequately funded if its funding (excluding federal funding sources) covers less than 90% of the city’s projected development expenses. Any surplus funding from state and private sources are deposited in the federal pool of funds used for development projects for the nine cities and may be reallocated among the inadequately funded cities. After the surplus funds are allocated, the federal resources will be used to fund up to 10% for an adequately funded city’s expenses or the amount needed to reach 100% funding, whichever is smaller.
830
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
53% (03:57) correct
47%
(04:15)
wrong
based on 389
sessions
History
Date
Time
Result
Not Attempted Yet
1. Approximately how much surplus amount will be allocated to the federal pool of funds to be shared among the inadequately funded cities? All answers are in million Krovanian dollars.
| 920 | |
| 800 | |
| 830 | |
| 660 | |
| 700 |
The amount of federal sources given to city C as a percentage of total funding needed by the development projects of that city is more than that given to the development of city A.: Yes
Development projects of more than 40% of the cities are inadequately funded.: Yes
The federal funding allocated for the nine cities will not be exhausted, even after allocating the necessary funds to the inadequately funded cities.: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
39% (02:54) correct
61%
(02:40)
wrong
based on 549
sessions
History
Date
Time
Result
Not Attempted Yet
2. For each of the following statements, all of which refer to the 9 cities discussed in the prompt, select Yes if the statement can be shown to be true using the information provided. Otherwise, select No.
| Yes | No | |
| The amount of federal sources given to city C as a percentage of total funding needed by the development projects of that city is more than that given to the development of city A. | ||
| Development projects of more than 40% of the cities are inadequately funded. | ||
| The federal funding allocated for the nine cities will not be exhausted, even after allocating the necessary funds to the inadequately funded cities. |
ShowHide Answer
Official Answer
The amount of federal sources given to city C as a percentage of total funding needed by the development projects of that city is more than that given to the development of city A.: Yes
Development projects of more than 40% of the cities are inadequately funded.: Yes
The federal funding allocated for the nine cities will not be exhausted, even after allocating the necessary funds to the inadequately funded cities.: Yes
125
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
22% (02:53) correct
78%
(02:18)
wrong
based on 321
sessions
History
Date
Time
Result
Not Attempted Yet
3. Suppose that the surplus funds from the adequately funded cities are not to be used for the inadequately funded cities and the additional funding is through other Federal sources. Then what is the approximate amount of funds is remaining with the federal sources after funding the inadequately funded cities (excluding the surplus funds from the adequately funded cities). All answers are in million Krovanian dollars
| 185 | |
| 175 | |
| 155 | |
| 135 | |
| 125 |
Green Town: Yes
Coni: No
Ilica: Yes
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
95%
(hard)
Question Stats:
13% (01:24) correct
87%
(01:43)
wrong
based on 342
sessions
History
Date
Time
Result
Not Attempted Yet
4. Due to a recent change in the Republic of Krovania’s budget, state funding will get an additional 20% from the tax increase. With this new information, will the development projects of the following cities require additional funding? Select Yes if the city would still be funded from additional sources, otherwise select No.
| Yes | No | |
| Green Town | ||
| Coni | ||
| Ilica |
ShowHide Answer
Official Answer
Green Town: Yes
Coni: No
Ilica: Yes
Attachment:
MSR Table.png [ 23.98 KiB | Viewed 12451 times ]
25 Dec 2020, 00:35
Kudos
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1) E: 586
D: 150
H: 92
= 826
(C)
2) Yes City C 210 +340/0.68 = 808 ; 90/808 =11.128
City A 350+300/0.82 = ~793; 85/793 = 10...
Yes adequate: 5, inadequate: 3
Yes
3) B [ not sure how to calculate it]
4) G: yes, C: no, L: yes
Please correct my answers
D: 150
H: 92
= 826
(C)
2) Yes City C 210 +340/0.68 = 808 ; 90/808 =11.128
City A 350+300/0.82 = ~793; 85/793 = 10...
Yes adequate: 5, inadequate: 3
Yes
3) B [ not sure how to calculate it]
4) G: yes, C: no, L: yes
Please correct my answers
