Events & Promotions
|
|
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.
Customized
for You
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
25 Oct 2018, 03:07
Kudos
Bookmarks
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
75%
(hard)
Question Stats:
63% (03:06) correct
37%
(03:03)
wrong
based on 536
sessions
History
Date
Time
Result
Not Attempted Yet
This year, a woman has a lucrative one-year position. During this year, she will give a fraction f of her salary to her husband, a private investor, to invest and they will live this year on the remainder. Through investments, her husband can turn each dollar she gives him into 1 + r, which will be deposited in a bank account. Their goal is to save & invest enough money so they can live off this money for two years following the end of the wife's position. Toward this end, they want to choose f such that the amount in the account at the end of the year is twice what they lived off this year. In terms of r, what should f be?
A. 1/(r+1)
B. 2/(r+2)
C. 2/(2r+1)
D. 2/(r+3)
E. 2/(2r+3)
A. 1/(r+1)
B. 2/(r+2)
C. 2/(2r+1)
D. 2/(r+3)
E. 2/(2r+3)
25 Oct 2018, 06:03
Kudos
Bookmarks
Bunuel
One of the ways to go about this question is assuming numbers
Let the value of f be \(\frac{1}{4}\) and Woman's dollar amount income is $10000.
Now, the woman gives $2500 to her husband and he makes that initial investment ($2500)(1 + r)
The couple will have $7500 for living this year. Since they need to choose f such that the amount
will be twice what they lived off this year, they would need to save $15000
($2500)(1 + r) = $15000 -> r = $12500/$2500 = 5.
Evaluating answer options to find out which of the answer options gives \(\frac{1}{4}\) for r=5
A. 1/(r+1) = 1/6
B. 2/(r+2) = 2/7
C. 2/(2r+1) = 2/11
D. 2/(r+3) = 2/8 = 1/4 (We have a match)
Therefore, the value of f in terms of r is (2/r+3 - Option D)
Updated on: 19 Jan 2020, 13:50
Originally posted by BrentGMATPrepNow on 26 Oct 2018, 11:13.
Last edited by BrentGMATPrepNow on 19 Jan 2020, 13:50, edited 1 time in total.
Last edited by BrentGMATPrepNow on 19 Jan 2020, 13:50, edited 1 time in total.
Kudos
Bookmarks
Bunuel
Let T = the woman's total salary for the year
During this year, she will give a fraction f of her salary to her husband, a private investor, to invest and they will live this year on the remainder.
So, the amount SAVED (and then given to huspand)= fT
This means the amount SPENT = T - fT (total salary minus the amount saved)
In other words, T - fT = living expenses for ONE year
Through investments, her husband can turn each dollar she gives him into 1 + r, which will be deposited in a bank account.
Many will struggle converting this info to an algebraic expression.
When this happens, start by examining a few easier scenarios and then try to generalize. Here's what I mean:
If the husband is given 1 dollar, then he will turn that into 1 + r dollars
If the husband is given 2 dollars, then he will turn that into 2 + 2r dollars
If the husband is given 3 dollars, then he will turn that into 3 + 3r dollars
.
.
.
So, If the husband is given fT dollars, then he will turn that into fT + fTr dollars
They want to choose f such that the amount in the account at the end of the year is twice what they lived off this year. In terms of r, what should f be?
We want: (invested money) = 2(living expenses for 1 year)
Rewrite as: (fT + fTr) = 2(T - fT)
Expand right side: fT + fTr = 2T - 2fT
Divide both sides by T to get: f + fr = 2 - 2f
Add 2f to both sides: 3f + fr = 2
Factor right side: f(3 + r) = 2
Divide both sides by (3 + r) to get: f = 2/(3 + r)
Answer: D
