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DS Q

by rahul.s » Sat Feb 06, 2010 5:45 am
For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.

OA: A

clearly, the answer is A. but i have another question: if in statement 1 the annual rate of return was the same for both the investments, does that still make it sufficient? it is giving us a unique answer: the annual rate of return is the same for both the investments. is statement 1 still considered sufficient?

it may seem like an ignorant question, but i'd like to ask it nonetheless. better before the gmat than after it :D
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by sanju09 » Sat Feb 06, 2010 6:02 am
rahul.s wrote:For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.

OA: A

clearly, the answer is A. but i have another question: if in statement 1 the annual rate of return was the same for both the investments, does that still make it sufficient? it is giving us a unique answer: the annual rate of return is the same for both the investments. is statement 1 still considered sufficient?

it may seem like an ignorant question, but i'd like to ask it nonetheless. better before the gmat than after it :D
We can never find the greater from two equals. So, in that case, the answer would have been [spoiler]E[/spoiler].
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by harsh.champ » Sat Feb 06, 2010 6:06 am
rahul.s wrote:For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.

OA: A

clearly, the answer is A. but i have another question: if in statement 1 the annual rate of return was the same for both the investments, does that still make it sufficient? it is giving us a unique answer: the annual rate of return is the same for both the investments. is statement 1 still considered sufficient?

it may seem like an ignorant question, but i'd like to ask it nonetheless. better before the gmat than after it :D
If the annual rate of return was same for both investments in statement 1 then only statement 1 could answer the question .
Ans would have been(Both are equal,none is greater)
But such a statement would render the question useless.It cannot come in the exam.
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by rahul.s » Sat Feb 06, 2010 6:17 am
sanju09 wrote:
rahul.s wrote:For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.

OA: A

clearly, the answer is A. but i have another question: if in statement 1 the annual rate of return was the same for both the investments, does that still make it sufficient? it is giving us a unique answer: the annual rate of return is the same for both the investments. is statement 1 still considered sufficient?

it may seem like an ignorant question, but i'd like to ask it nonetheless. better before the gmat than after it :D
We can never find the greater from two equals. So, in that case, the answer would have been [spoiler]E[/spoiler].
but statement 1 does give us a unique answer, and the purpose of a ds problem is to find a unique answer, is it not? so wouldn't that make option A the right answer? thoughts?

i'm quite confused
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by sanju09 » Sat Feb 06, 2010 6:22 am
rahul.s wrote:
sanju09 wrote:
rahul.s wrote:For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.

OA: A

clearly, the answer is A. but i have another question: if in statement 1 the annual rate of return was the same for both the investments, does that still make it sufficient? it is giving us a unique answer: the annual rate of return is the same for both the investments. is statement 1 still considered sufficient?

it may seem like an ignorant question, but i'd like to ask it nonetheless. better before the gmat than after it :D
We can never find the greater from two equals. So, in that case, the answer would have been [spoiler]E[/spoiler].
but statement 1 does give us a unique answer, and the purpose of a ds problem is to find a unique answer, is it not? so wouldn't that make option A the right answer? thoughts?

i'm quite confused
Yes, GMAT DS calls for a unique answer to the question what it has actually made. J or K? You said both? Insufficient
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by rahul.s » Sat Feb 06, 2010 6:33 am
sanju09 wrote:Yes, GMAT DS calls for a unique answer to the question what it has actually made. J or K? You said both? Insufficient
statement 1 tells us that neither is greater. a unique answer, hence A :)
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by bhumika.k.shah » Sat Feb 06, 2010 11:34 am
I think what rahul is trying to ask that if in DS for any question , for any one particular statement , i get my answer as Neither ...in that case will that statement alone be sufficient ?

Is Neither an unique answer ????
rahul.s wrote:
sanju09 wrote:Yes, GMAT DS calls for a unique answer to the question what it has actually made. J or K? You said both? Insufficient
statement 1 tells us that neither is greater. a unique answer, hence A :)
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by akahuja143 » Sat Feb 06, 2010 1:05 pm
Yes it would be for Yes/No question. like this is answer would ne No ..
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by sanju09 » Mon Feb 08, 2010 2:08 am
bhumika.k.shah wrote:I think what rahul is trying to ask that if in DS for any question , for any one particular statement , i get my answer as Neither ...in that case will that statement alone be sufficient ?

Is Neither an unique answer ????
rahul.s wrote:
sanju09 wrote:Yes, GMAT DS calls for a unique answer to the question what it has actually made. J or K? You said both? Insufficient
statement 1 tells us that neither is greater. a unique answer, hence A :)
Vagueness in wordings is one thing that no one would find on real test. When a question on real GMAT DS reads, "For which type of investment, J or K, is the annual rate of return greater?" they mean that we are bound to settle on one. Can we? No? Not answered.

For this DS problem in particular, the choices like "Both are equal, none is greater, neither is greater...etc" are not what GMAT DS takes it as unique in situations like this. Moreover, that would definitely not be happening on the real test.
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by Jeff@TargetTestPrep » Tue Jul 17, 2018 3:48 pm
rahul.s wrote:For which type of investment, J or K, is the annual rate of return greater?

(1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

(2) The annual rate of return for an investment of type K is 12 percent.
Statement One Alone:

Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested for any one-year period.

From the statement, we can determine the annual rate of return of type J investment is 115/1000 = 0.115 = 11.5%. Similarly, the annual rate of return of type K investment is 200/2500 = 0.12 = 12%. So the annual rate of return of type K investment is greater.

Alternatively, we can assume $5,000 is invested in each type of investment. Type J will return $115 x 5 = $575 and type K will return $300 x 2 = $600. Since type K returns more money for the same amount of principal, the annual rate of return of type K is greater.

Statement one alone is sufficient.

Statement Two Alone:

The annual rate of return for an investment of type K is 12 percent.

Without knowing anything about the investment of type J, we can't answer the question. Statement two alone is not sufficient.

Answer: A

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