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Simple interest

by crackgmat007 » Wed May 13, 2009 9:06 pm
Q10:
A total of $60,000 was invested for one year. Part of this amount earned simple annual interest at the rate of x percent per year, and the rest earned simple annual interest at the rate of y percent per year. If the total interest earned by the $60,000 for that year was $4,080, what is the value of x?
(1) x = 3/4y
(2) The ratio of the amount that earned interest at the rate of x percent per year to the amount that earned interest at the rate of y percent per year was 3 to 2.

Is statement 2 alone not sufficient? Answer seems to be C
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by aj5105 » Wed May 13, 2009 11:53 pm
Statement 1: We don't know what amount was invested at x% and we don't know what amount was invested at y%.

Statement 2: We can find out the amount invested through the ratio given, but we do not know the relationship between x and y.

Together, Sufficient.

(C)
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by sanju09 » Thu May 14, 2009 3:38 am
If $p were invested on what has earned simple annual interest at the rate of x percent per year, then $ (60,000 – p) were invested on what has earned simple annual interest at the rate of y percent per year, such that {(x p)/100} + {y (60,000 – p)/100} = $4,080. And the amounts the two sums would get should give, p + {(x p)/100} + (60,000 – p) + {y (60,000 – p)/100} = $64,080. This is with three unknown variables; we need 2 more different equations that are sufficient for an existing solution.

Statement (1) reduces it to a single equation in any 2 variables (x, p or y, p), hence insufficient.

With the ratio [p + {(x p)/100}]:[(60,000 – p) + {y (60,000 – p)/100}] = 3:2, from statement (2), we can form another different equation in the three variables, which in turn, would reduce our work to solve a single equation in any two variables, hence insufficient.

However, if we take the two statements together, we know that each of the two statement reveal a different information about the three variables, in contrast with the information in the stem, anything can be accurately answered now. My C.
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by sanju09 » Wed Feb 17, 2010 4:35 am
Alright now, please answer to this simple question of mine

Why does a slight tax increase cost you two hundred dollars and a substantial tax cut saves you thirty cents?
The mind is everything. What you think you become. -Lord Buddha



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by komal » Thu Feb 18, 2010 12:00 am
crackgmat007 wrote:Q10:
A total of $60,000 was invested for one year. Part of this amount earned simple annual interest at the rate of x percent per year, and the rest earned simple annual interest at the rate of y percent per year. If the total interest earned by the $60,000 for that year was $4,080, what is the value of x?
(1) x = 3/4y
(2) The ratio of the amount that earned interest at the rate of x percent per year to the amount that earned interest at the rate of y percent per year was 3 to 2.

Is statement 2 alone not sufficient? Answer seems to be C

1. This is insufficient because we dont know about the split (amt. invested at x% & amt. invested at y%)

2. This is also not sufficient 4080 = x(60000/(3/5) + y(60000/(2/5) = 36000x + 24000y

we know that 1 and 2 together is a = 36000 = sufficient

(C) is correct
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by shashank.ism » Sun Feb 21, 2010 1:15 pm
crackgmat007 wrote:Q10:
A total of $60,000 was invested for one year. Part of this amount earned simple annual interest at the rate of x percent per year, and the rest earned simple annual interest at the rate of y percent per year. If the total interest earned by the $60,000 for that year was $4,080, what is the value of x?
(1) x = 3/4y
(2) The ratio of the amount that earned interest at the rate of x percent per year to the amount that earned interest at the rate of y percent per year was 3 to 2.

Is statement 2 alone not sufficient? Answer seems to be C
principal amount = $60,000 .
4080 = p x/100 +(60000-p)y/100
St.1) x = 3/4y --> but amount invested for each is not known ===> insuff.
St.2) p/(60000-p) = 3/2 -->2p = 180000-3p --> p = 180000/5 = 36000 we don't know relation bet x and y not suff.
combined) we know both p = 36000 , (60000-p)= 14000
x = 3/4y
4080 = p x/100 +(60000-p)y/100 --> 4080 x100 = 36000(3/4 y) + 14000y --> 408 = (270 + 140 )y so suff. ans C
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by harsh.champ » Sun Feb 21, 2010 1:30 pm
sanju09 wrote:Alright now, please answer to this simple question of mine

Why does a slight tax increase cost you two hundred dollars and a substantial tax cut saves you thirty cents?
Hey sanju09,
I didn't understand your question.IMO both should be the same.
Suppose a man earns Rs.100.
30% tax is levied on him.
Then his saving =Rs.70
Tax =RS.70
Now,if tax is increased to 40%
Saving =Rs.60
Tax =Rs.40

Now,for tax cut
Suppose 20% tax is levied on him
THen he saves Rs.80
Tax =Rs.20

I dont know why it would be different??
Is this question related to any of the tax laws??
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by shashank.ism » Sun Feb 21, 2010 1:37 pm
sanju09 wrote:Alright now, please answer to this simple question of mine
Why does a slight tax increase cost you two hundred dollars and a substantial tax cut saves you thirty cents?
Sanju09 what does that mean ... is it related to this problem or u r trying to ask in some other context
well slight tax increase will only cost you small change
and when there will be substatial cut then it will save you huge amount of money..
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