Data Sufficiency Question

Question

Hello,

I am unable to understand this question. I got this from Barron's flashcards.

35% of a certain amount of money was invested in stocks. Of the remaining amount of money, 50% was used to buy bonds, and $975 was put in a savings account. Find the initial amount of money,

A. $2,000
B. $2,500
C. $3,000
D. $3,500
E. $4,000

I understood till (50/100) (65/100) x
I didn't understand how to use $975.
Can somebody explain?

x represents total amount

Thanks!

brianlange77 · Answer

sparkles3144 wrote:Hello,

I am unable to understand this question. I got this from Barron's flashcards.

35% of a certain amount of money was invested in stocks. Of the remaining amount of money, 50% was used to buy bonds, and $975 was put in a savings account. Find the initial amount of money,

A. $2,000
B. $2,500
C. $3,000
D. $3,500
E. $4,000

I understood till (50/100) (65/100) x
I didn't understand how to use $975.
Can somebody explain?

x represents total amount

Thanks!

Let x = initial amount

35% of a certain amount of money was invested in stocks
This leaves 65% of the money.
So, the remaining money = 0.65x

Of the remaining amount of money, 50% was used to buy bonds
So, half of the 0.65x dollars was spent on bonds, and the other half was put in a savings account.
In other words, the amount spent on bonds = (0.5)(0.65x) = 0.325x
Similarly, the amount put in a savings account = 0.325x

$975 was put in a savings account.
0.325x = 975
x = 975/0.325
x = 3000

Answer = C

Cheers,
Brent

Brent@GMATPrepNow · Answer

sparkles3144 wrote:Hello,

I am unable to understand this question. I got this from Barron's flashcards.

35% of a certain amount of money was invested in stocks. Of the remaining amount of money, 50% was used to buy bonds, and $975 was put in a savings account. Find the initial amount of money,

A. $2,000
B. $2,500
C. $3,000
D. $3,500
E. $4,000

I understood till (50/100) (65/100) x
I didn't understand how to use $975.
Can somebody explain?

x represents total amount

Thanks!

Let x = initial amount

35% of a certain amount of money was invested in stocks
This leaves 65% of the money.
So, the remaining money = 0.65x

Of the remaining amount of money, 50% was used to buy bonds
So, half of the 0.65x dollars was spent on bonds, and the other half was put in a savings account.
In other words, the amount spent on bonds = (0.5)(0.65x) = 0.325x
Similarly, the amount put in a savings account = 0.325x

$975 was put in a savings account.
0.325x = 975
x = 975/0.325
x = 3000

Answer = C

Cheers,
Brent

Brent Hanneson - Creator of GMATPrepNow.com

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