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pl solve ..exam in few days

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by gmat20092009 » Sun Sep 06, 2009 10:47 pm
Person A invests x dollars, and person B invests y dollars. A earns an annual interest of 4%, B
earns an annual interest of 6%. The interest is compounded annually. What is the ratio of the
original investment of person A to that of person B ?

(1) At the end of the second year, the interests earned by A and B is equal.
(2) At the end of the second year, A earns an interests of $400, and B earns interest of $500.
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Source: — Data Sufficiency |
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by g1988enator » Fri Sep 11, 2009 11:41 am
both the statements itself are sufficient to solve.
1 statement u equate both compound interest and u can solve.
in second u can solve diffrently and thn take the ratio .

if my ans is wrong plz inform me
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by siddarth » Sat Sep 12, 2009 2:25 am
answer should be B.

Statement 1 helps u equate 2 equations with regards to X & Y.

Statement 2 helps you get the exact Values for X & Y.
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by Nermal » Sat Sep 12, 2009 2:39 am
I don't understand the logic of those statements.
statement 1 says they both earned the same amount of interest in a given year, statement 2 contradicts statement 1 by given different amounts for A and B in the same given year.
Am I missing something?
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Re: pl solve ..exam in few days

by dtweah » Sat Sep 12, 2009 2:59 am
gmat20092009 wrote:Person A invests x dollars, and person B invests y dollars. A earns an annual interest of 4%, B
earns an annual interest of 6%. The interest is compounded annually. What is the ratio of the
original investment of person A to that of person B ?

(1) At the end of the second year, the interests earned by A and B is equal.
(2) At the end of the second year, A earns an interests of $400, and B earns interest of $500.
A has at the end of the second year. 1.0816X
B has 1.1236Y

Under 1 .0816x=.1236Y. This gives the ratio. Suff.

Under 2 .0816X=400. Do same for Y and you are able to solve for x and y and find ratio. Suff.

Choose D.
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