• Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep

Simple interest - Difficulty hard

This topic has 5 expert replies and 0 member replies
Alphonsaj Newbie | Next Rank: 10 Posts Default Avatar
Joined
14 Jul 2016
Posted:
8 messages

Simple interest - Difficulty hard

Post Thu Jul 14, 2016 2:04 am
A father left a will of $71 million between his 2 daughters aged 8.5 years and 12 years such that they may get equal amounts when each of them reach the age of 18 years. The father instructed that the original amount of 71mn be invested at 10% pa till such time the daughters turned 18. How much did the elder daughter get at the time of the will?

A.31mn
B.49mn
C.39mn
D.35.5mn
E.40mn


Source : 4Gmat
C

  • +1 Upvote Post
  • Quote
  • Flag
Need free GMAT or MBA advice from an expert? Register for Beat The GMAT now and post your question in these forums!

GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Most Active Expert Most Responsive Expert Most Thanked Expert
Top Reply
Post Wed Jul 20, 2016 9:50 pm
Of course, I probably should've reduced the above to one equation from the start. We know that

Elder's Daughter Trust * Interest = Younger Daughter's Trust * Interest

or

x * (1 + .1*6) = (71 - x) * (1 + .1*9.5)

One variable, one equation, much easier to see and to solve ... go with this one.

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Most Active Expert Most Responsive Expert Most Thanked Expert
Top Reply
Post Wed Jul 20, 2016 9:56 pm
BTW this is a really neat question: thinking about the setup is a bit baffling (I was stuck for a sec on how they could receive the same amount of money when they each turn 18!), but the equation ends up being so clean! Kudos to the author.

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Most Active Expert Most Responsive Expert Most Thanked Expert
Post Wed Jul 20, 2016 9:50 pm
Of course, I probably should've reduced the above to one equation from the start. We know that

Elder's Daughter Trust * Interest = Younger Daughter's Trust * Interest

or

x * (1 + .1*6) = (71 - x) * (1 + .1*9.5)

One variable, one equation, much easier to see and to solve ... go with this one.

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Most Active Expert Most Responsive Expert Most Thanked Expert
Post Wed Jul 20, 2016 9:56 pm
BTW this is a really neat question: thinking about the setup is a bit baffling (I was stuck for a sec on how they could receive the same amount of money when they each turn 18!), but the equation ends up being so clean! Kudos to the author.

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

GMAT/MBA Expert

Matt@VeritasPrep GMAT Instructor
Joined
12 Sep 2012
Posted:
2640 messages
Followed by:
113 members
Upvotes:
625
Target GMAT Score:
V51
GMAT Score:
780
Most Active Expert Most Responsive Expert Most Thanked Expert
Post Wed Jul 20, 2016 9:35 pm
I'd think of it this way.

The elder daughter will get her money in 6 years, so let's run the interest till then first, and call her initial amount x.

Elder daughter's net: x * (1 + .1*6)

The younger daughter's share (let's call that y) is similar:

Younger daughter's net: y * (1 + .1*9.5)

We know that the initial shares sum to 71, so we have (x + y) = 71.

We also know that the two daughters receive the same amounts, so x * (1 + .1*6) = y * (1 + .1*9.5)

We want to solve for x, so let's isolate y: x * (1.6)/(1.95) = y

Then plug this back into our first equation, x + y = 71:

x + x * (1.6)/(1.95) = 71

x * (1 + 160/195) = 71

x * (355 / 195) = 71

x = 195 * (71 / 355) => 195 * (1/5) => 39

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

Best Conversation Starters

1 lheiannie07 120 topics
2 ardz24 65 topics
3 LUANDATO 63 topics
4 swerve 61 topics
5 AAPL 59 topics
See More Top Beat The GMAT Members...

Most Active Experts

1 image description Scott@TargetTestPrep

Target Test Prep

186 posts
2 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

171 posts
3 image description Jeff@TargetTestPrep

Target Test Prep

147 posts
4 image description Rich.C@EMPOWERgma...

EMPOWERgmat

133 posts
5 image description GMATGuruNY

The Princeton Review Teacher

128 posts
See More Top Beat The GMAT Experts