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Three business people

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Intern
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Three business people [#permalink]

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New post 03 Aug 2010, 04:50
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  25% (medium)

Question Stats:

100% (01:23) correct 0% (00:00) wrong based on 9 sessions

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Three business people who wish to invest in a new company. Each person is willing to pay one third of the total investment. . After careful calculation, they realize that each of them would pay $ 7200 less if they could find two more equal investors. How much is the total investment in the new business.
a) $ 64,000
b) $ 54,000
c) $ 21,000
d) $ 5,400
e) $3,600
[Reveal] Spoiler: OA

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Manager
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Re: Three business people [#permalink]

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New post 03 Aug 2010, 05:25
Hi,

Initially each invest in x. Hence total investment is 3x.
Total investment is also 5(x-7200).

3x = 5(x-7200)
x= 5*7200/2 = 18000
3x = 54000 and the answer is B.

regards,
Jack

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Manager
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Location: United States (MI)
Concentration: Marketing, General Management
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Re: Three business people [#permalink]

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New post 04 Aug 2010, 04:37
x - total investment
3*x/3 = 5*(x/3-7200)

x=54000
(B)

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Ms. Big Fat Panda
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Re: Three business people [#permalink]

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New post 04 Aug 2010, 10:44
Other wrote:
Three business people who wish to invest in a new company. Each person is willing to pay one third of the total investment. . After careful calculation, they realize that each of them would pay $ 7200 less if they could find two more equal investors. How much is the total investment in the new business.
a) $ 64,000
b) $ 54,000
c) $ 21,000
d) $ 5,400
e) $3,600


Let us assume that the total investment is X. So initially each investor is willing to pay

If they find two more partners, the new level of investment becomes \(\frac{X}{5}\)

We are told that:

\(\frac{X}{3}\) = \(\frac{X}{5} + 7200\)

\(\frac{X}{3} -\frac{X}{5} = 7200\)

\(\frac{2X}{15} = 7200\)

\(X = \frac{7200*15}{2} = 54000\)

Hence the answer is B.

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Senior Manager
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Re: Three business people [#permalink]

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New post 08 Aug 2010, 19:48
Answer: B.

\(x/3 - x/5\) = 7200
\(2x/15\) = 7200

x = 54000
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Re: Three business people   [#permalink] 08 Aug 2010, 19:48
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