Gmat Prep - Simple interest

1 is insufficient because we do not know any relationship between the interest rates or the sums of money.
2 is insufficient because you can't tell anything about investment y, since, again, you do not have a relationship between x and y.

Put together, the two stmts are more efficient in solving the mystery. Since we know that 0.07y = 0.05x or that 7y = 5x and we also know that x + y = 24000. This is a simple set of equations with two unknown numbers, x and y.
So 7y = 5x
x + y = 24 000
Solve this system and you'll get the answer.

So answer is C.

Hey Dubestuts,

From The question Stem we have X+Y= 24000.
So let X be x, Y be (24000-x)

Y earns 7% interest.

St1) does not give us any information
St2)Gives info about X, but nothing abt principle amt for Y

Now Put this into simple interest formula Using St 1 &St 2
SI= (P*R*T)/100
(x*7*1)/100= ((24000-x)*5*1)/100

Gives value for both X and Y and SI!!

C is the answer

Thanks a lot for your help and time.