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A group of 20 friends formed an investment club, with each

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A group of 20 friends formed an investment club, with each

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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

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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
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.

The correct answer is E.

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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.

Answer: E

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Scott Woodbury-Stewart
Founder and CEO
scott@targettestprep.com



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