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by ROHIT11111 » Tue May 03, 2016 1:29 am
An investor purchased a block of shares in Company X and held them for 12 months. During this period she received £220 in dividends. If she had held 800 more shares for the year she would have received £88 more in total annual dividends. How many shares in Company X did she actually have?

options-2000,3000,1500,4000
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by 800_or_bust » Tue May 03, 2016 3:01 am
First, identify that dividends are given in equal amounts per share. Therefore, we can simply set up a ratio to solve this.

(88/800) = (220/x)

Simplify the fraction on the left...

(11/100) = (220/x)

Then cross-multiply to get...

22000 = 11x

Divide both sides by 11...

[spoiler]x = 2000[/spoiler]

So the answer is [spoiler](A)[/spoiler].
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by [email protected] » Tue May 03, 2016 9:22 am
Hi ROHIT11111,

What is the source of this question? I ask because it's poorly worded and not in the proper 'style' that you'll see in Official GMAT questions. While the 'intent' of the question is to test your understanding of ratios, the GMAT writers are far more specific in the wording and design of their prompts. You might want to switch to materials that are more consistent with what you'll face on Test Day.

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