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Jihyo
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X & Y entered into partnership with $700 and $600 respectively. Updated on: 30 Sep 2024, 23:25
Originally posted by Jihyo on 03 May 2021, 11:36.
Last edited by Bunuel on 30 Sep 2024, 23:25, edited 2 times in total.
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58% (03:11) correct 42% (03:31) wrong based on 193 sessions

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X & Y entered into partnership with $700 and $600 respectively. After 3 months, X withdrew 2/7 of his stock but after 3 months, he puts back 3/5 of what he had withdrawn. The profit at the end of the year is $726. If the profit was shared according to time weighted investment, then what was the difference between the profits of those two friends?

A. $360
B. $183
C. $36
D. $6
E. $4

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GMAT Focus 1: 735 Q90 V89 DI81
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X & Y entered into partnership with $700 and $600 respectively. 03 May 2021, 20:10
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Jihyo
X & Y entered into partnership with $700 and $600 respectively. After 3 months, X withdrew 2/7 of his stock but after 3 months, he puts back 3/5 of what he had withdrawn. The profit at the end of the year is $726.If the profit was shared according to time weighted investment , then what was the difference between the profits of those two friends?
A)$360
B)$183
C)$36
D)$6
E)$8

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Since the funds change after 3 months in initial 6 months, let us check the quarterly investments.
First quarter: X=700, Y=600
Second quarter: X=700-200=500, Y=600
Third and fourth quarter: X=500+120=620, Y=600

Investments:
X=700+500+2*620=2440 and Y=4*600=2400
Ratio : X:Y = 2440:2400=61:60
This difference is 1 when the amount is 61+60=121. But the profit is 726, so difference is 726/121=6

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X & Y entered into partnership with $700 and $600 respectively. 30 Sep 2024, 21:52
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chetan2u can you explain why we you have added 600 for each quarter for Y? there is only an initial investment of 600 right? Similarly for X
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X & Y entered into partnership with $700 and $600 respectively. 30 Sep 2024, 23:31
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chetan2u can you explain why we you have added 600 for each quarter for Y? there is only an initial investment of 600 right? Similarly for X
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Y’s investment remains constant at $600 throughout the year, so it is the same for each quarter. For X, since the investment changes for each quarter, we calculate separately for each period. Technically, we could divide both by 4 to get the average per quarter, but since we would be dividing both X and Y's investments by the same factor (4), it cancels out. Thus, we can skip the division altogether and still get the same result.
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X & Y entered into partnership with $700 and $600 respectively. 30 Nov 2025, 12:43
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