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guddo
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 24 Jan 2024, 02:21
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and a bond fund. After 1 year, the stock fund had increased 13% in value and the bond fund had increased 18% in value. Was the amount of increase in the bond fund greater than $5,000?

(1) The amount of increase in the stock and bond funds combined was $8,000.
(2) The dollar amount of increase in the stock fund was less than $3,900.


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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 26 Jan 2024, 15:35
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guddo
Alberto invested a total of $50,000 in 2 new funds-a stock fund and a bond fund. After 1 year, the stock fund had increased 13% in value and the bond fund had increased 18% in value. Was the amount of increase in the bond fund greater than $5,000?

(1) The amount of increase in the stock and bond funds combined was $8,000.
(2) The dollar amount of increase in the stock fund was less than $3,900.


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Initially \(s+b=50,000\)

After \(1\) year the total value becomes \(= .13s+.18b\)

We need to find whether \(.18b > 5000\) or basically we need the value of \(b.\)

(1) The amount of increase in the stock and bond funds combined was $8,000.

\(.13s+.18b=8000\)

Also we know \(s+b =50,000\)

Thus we have two distinct equations and two unknowns, hence we can solve for the value of \(b\).

SUFF.

(2) The dollar amount of increase in the stock fund was less than $3,900.

\(.13s < 3900\)

Thus \(s<30,000\). Hence b \(> 20,000\)

If \(b = 20,100\) then NO.
If \(b = 40,000\) then YES.

INSUFF.

Ans A

Hope it helped.
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 03 Jul 2024, 06:15
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Using first statement,

The amount of increase in both = 8000
8000 / 50000 * 100 = 16 % over all increase.

Using alligation,
Ratio of Stock and bond = 2/3
Increase in bond fund = 3/5 * 8000 = 4800 ..The answer is NO. Sufficient ; first statement is Sufficient

USing Second statement ,
Let amount invested in Stock = x
13*x / 100 < 3900
x<30,000
Hence the amount invested in bond > 20000
The increase is >= 20000* 18 /100 = 3600

So the amount of increase in the bond fund is greater than 3600 . It can be more than 5000 or not more than 5000.
Hence statement 2 is not sufficient.
A is the answer.

GMATinsight
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 13 Dec 2024, 10:38
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Hi, for statement 1 given the $8000 can be split in ways which lead to bonds returning both more than and less than $5000, how can we say it is sufficent? Thanks
stne
guddo
Alberto invested a total of $50,000 in 2 new funds-a stock fund and a bond fund. After 1 year, the stock fund had increased 13% in value and the bond fund had increased 18% in value. Was the amount of increase in the bond fund greater than $5,000?

(1) The amount of increase in the stock and bond funds combined was $8,000.
(2) The dollar amount of increase in the stock fund was less than $3,900.


Show Spoiler
Attachment:
2024-01-24_13-20-14.png

Initially \(s+b=50,000\)

After \(1\) year the total value becomes \(= .13s+.18b\)

We need to find whether \(.18b > 5000\) or basically we need the value of \(b.\)

(1) The amount of increase in the stock and bond funds combined was $8,000.

\(.13s+.18b=8000\)

Also we know \(s+b =50,000\)

Thus we have two distinct equations and two unknowns, hence we can solve for the value of \(b\).

SUFF.

(2) The dollar amount of increase in the stock fund was less than $3,900.

\(.13s < 3900\)

Thus \(s<30,000\). Hence b \(> 20,000\)

If \(b = 20,100\) then NO.
If \(b = 40,000\) then YES.

INSUFF.

Ans A

Hope it helped.
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 16 Dec 2024, 08:05
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Hi, for statement 1 given the $8000 can be split in ways which lead to bonds returning both more than and less than $5000, how can we say it is sufficent? Thanks
stne
guddo
Alberto invested a total of $50,000 in 2 new funds-a stock fund and a bond fund. After 1 year, the stock fund had increased 13% in value and the bond fund had increased 18% in value. Was the amount of increase in the bond fund greater than $5,000?

(1) The amount of increase in the stock and bond funds combined was $8,000.
(2) The dollar amount of increase in the stock fund was less than $3,900.


Show Spoiler
Attachment:
2024-01-24_13-20-14.png

Initially \(s+b=50,000\)

After \(1\) year the total value becomes \(= .13s+.18b\)

We need to find whether \(.18b > 5000\) or basically we need the value of \(b.\)

(1) The amount of increase in the stock and bond funds combined was $8,000.

\(.13s+.18b=8000\)

Also we know \(s+b =50,000\)

Thus we have two distinct equations and two unknowns, hence we can solve for the value of \(b\).

SUFF.

(2) The dollar amount of increase in the stock fund was less than $3,900.

\(.13s < 3900\)

Thus \(s<30,000\). Hence b \(> 20,000\)

If \(b = 20,100\) then NO.
If \(b = 40,000\) then YES.

INSUFF.

Ans A

Hope it helped.
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We know total invested in stocks and bonds, thus \( s+b = 50,000\)

Also from (i) we know \(.13s+.18b=8000\)

Here we have 2 distinct equations and 2 unknowns. We can solve for the unknowns. Hope it helps.
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and 24 Dec 2024, 00:36
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guddo
Alberto invested a total of $50,000 in 2 new funds-a stock fund and a bond fund. After 1 year, the stock fund had increased 13% in value and the bond fund had increased 18% in value. Was the amount of increase in the bond fund greater than $5,000?

(1) The amount of increase in the stock and bond funds combined was $8,000.
(2) The dollar amount of increase in the stock fund was less than $3,900.


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S + B = 50000

Increase in Bond fund = 18% of B

Question: Is (18/100)*B > 5000
Question: Is B > 27777.7?

Statement 1: The amount of increase in the stock and bond funds combined was $8,000.
i.e. 13% of (50000-B)+ 18% of B > 8000
i.e. B > 30000 (Definitely YES)
SUFFICIENT

Statement 2: The dollar amount of increase in the stock fund was less than $3,900.
NOT SUFFICIENT


Answer: Option A
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Alberto invested a total of $50,000 in 2 new funds-a stock fund and Updated on: 12 Jul 2026, 11:38
Originally posted by RobertVericPrep on 12 Jul 2026, 11:29.
Last edited by RobertVericPrep on 12 Jul 2026, 11:38, edited 2 times in total.
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Let's say that S equals the amount of money invested in the stock fund and B equals the amount of money invested in the bond fund.

S + B = 50,000

We also know that after one year the value of the stock fund increases by (0.13)S and the value of the bond fund increases by (0.18)B

So the question is whether the increase in the bond fund exceeded $5,000. Since the increase is 0.18B, the question becomes:

(0.18)B > 5,000 ?


Statement 1:

We can write an equation:

(0.13)S + (0.18)B = 8,000

Together with S + B = 50,000, we now have two equations in the same two variables, so we could solve for B with substitution - replace S with (50,000 – B). No need to do the math! If we solved for B, we could then determine whether or not (0.18)B > 5,000

SUFFICIENT


Statement 2:

Let's write an inequality:

(0.13)S < 3,900

13S < 390,000

S < 30,000

Therefore,

B > 20,000

so

(0.18)B > (.18)20,000

(0.18)B > 3,600

But is (0.18)B > 5,000? We don’t know! Knowing that the increase exceeds $3,600 does not tell us whether it also exceeds $5,000.

INSUFFICIENT


Answer A
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