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06 Sep 2022, 04:03
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E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
55%
(hard)
Question Stats:
66% (03:17) correct
34%
(03:10)
wrong
based on 64
sessions
History
Date
Time
Result
Not Attempted Yet
A group of real estate investors wishes to invest $48 million in houses that cost $100 000 each. If 1/16 of their original $48 million is spent on overhead, and if the investors must pay an additional $4000 fee for each house after their 88th purchase, what is the greatest number of houses they can purchase?
A. 250
B. 300
C. 376
D. 388
E. 436
A. 250
B. 300
C. 376
D. 388
E. 436
07 Sep 2022, 13:35
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Bunuel
Total investment = $48 million
Overhead = \(\frac{1}{16}* 48 = \)$\(3\) million
Investment remaining = $\(45\) million
Maximum houses possible (ignoring the additional 4000 for each house after 88th purchase for now) = \(\frac{45,00,000}{100,000} = 450\) houses
But, there is a $\(4000\) spend for each house after 88th purchase
Now, instead of doing long and strenuous calculations, let us do option elimination
Since \(436\) is the closest to our pre-4000 estimate so let us start with that and work backwards
\(436\) houses will cost $\(43,600,000\) & the extra amount after 88th purchase will be for (\(436-88) 348\) houses = $\(348 * 4000 = \)$\(1,392,000\)
Both added together \(= 44,992,000\) approximately $\(45\) million
We do not need to check any other answer choice
Answer - E
