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100 points for $49 worth of Veritas practice GMATs FREE VERITAS PRACTICE GMAT EXAMS Earn 10 Points Per Post Earn 10 Points Per Thanks Earn 10 Points Per Upvote ## A group of 20 friends formed an investment club, with each tagged by: swerve ##### This topic has 2 expert replies and 0 member replies ### Top Member ## A group of 20 friends formed an investment club, with each ## Timer 00:00 ## Your Answer A B C D E ## Global Stats Difficult A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly among the members. In terms of d, how much money did each member of the club received from the sale? A. 800d B. 7d/5 C. d/20 + 40 D. d/2 E. 7d/100 The OA is E. Source: Princeton Review ### GMAT/MBA Expert GMAT Instructor Joined 25 May 2010 Posted: 15314 messages Followed by: 1863 members Upvotes: 13060 GMAT Score: 790 swerve wrote: A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly among the members. In terms of d, how much money did each member of the club received from the sale? A. 800d B. 7d/5 C. d/20 + 40 D. d/2 E. 7d/100 Let d=100. After the value of the stock increases by 40% to$140, the share received by each of the 20 friends = 140/20 = 7.
The correct answer must yield a value of 7 when d=100.
Only E works:
(7d)/100 = (7*100)/100 = 7.

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### GMAT/MBA Expert

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swerve wrote:
A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly among the members. In terms of d, how much money did each member of the club received from the sale?

A. 800d
B. 7d/5
C. d/20 + 40
D. d/2
E. 7d/100
After the stock increased by 40%, the new value was 1.4d.

Thus, each of the 20 members received 1.4d/20 = 14d/200 = 7d/100.

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Scott Woodbury-Stewart
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scott@targettestprep.com

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