If 1/2 of the money in a certain trust fund was invested...

This topic has expert replies
User avatar
Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Sun May 29, 2011 1:18 pm
If 1/2 of the money in a certain trust fund was invested in stocks, 1/4 in bonds, 1/5 in a mutual fund, and the remaining $10.000 in a government certificate, what was the total amount of the trust fund?

A.$100.000
B.$150.000
C.$200.000
D.$500.000
E.$2.000.000

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 3835
Joined: Fri Apr 02, 2010 10:00 pm
Location: Milpitas, CA
Thanked: 1854 times
Followed by:523 members
GMAT Score:770

by Anurag@Gurome » Sat Jun 18, 2011 10:51 pm
mariapazos wrote:If 1/2 of the money in a certain trust fund was invested in stocks, 1/4 in bonds, 1/5 in a mutual fund, and the remaining $10.000 in a government certificate, what was the total amount of the trust fund?
Remaining money that was invested in government certificate = (1 - 1/2 - 1/4 - 1/5) = 1/20 of the total money.

Hence, 1/20 of the total money = $10.000
Hence, total money = $(20*10.000) = $200.000

The correct answer is C.
Anurag Mairal, Ph.D., MBA
GMAT Expert, Admissions and Career Guidance
Gurome, Inc.
1-800-566-4043 (USA)

Join Our Facebook Groups
GMAT with Gurome
https://www.facebook.com/groups/272466352793633/
Admissions with Gurome
https://www.facebook.com/groups/461459690536574/
Career Advising with Gurome
https://www.facebook.com/groups/360435787349781/

User avatar
Master | Next Rank: 500 Posts
Posts: 436
Joined: Tue Feb 08, 2011 3:07 am
Thanked: 72 times
Followed by:6 members

by manpsingh87 » Sat Jun 18, 2011 11:40 pm
mariapazos wrote:If 1/2 of the money in a certain trust fund was invested in stocks, 1/4 in bonds, 1/5 in a mutual fund, and the remaining $10.000 in a government certificate, what was the total amount of the trust fund?

A.$100.000
B.$150.000
C.$200.000
D.$500.000
E.$2.000.000
let the initial amount be x;
1/2=50%; 1/4=25%; 1/5=20%;
which upon adding becomes 50%+25%+20%=95%;
so remaining 5% is=10;
(5/100)x=10;
x=200; hence C
O Excellence... my search for you is on... you can be far.. but not beyond my reach!

User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pm
Location: New York, NY
Thanked: 13060 times
Followed by:1906 members
GMAT Score:790

by GMATGuruNY » Sun Jun 19, 2011 1:41 am
mariapazos wrote:If 1/2 of the money in a certain trust fund was invested in stocks, 1/4 in bonds, 1/5 in a mutual fund, and the remaining $10.000 in a government certificate, what was the total amount of the trust fund?

A.$100.000
B.$150.000
C.$200.000
D.$500.000
E.$2.000.000
We can plug in the answers, which represent the total amount of the trust fund.

Answer choice C: 200,000
Stock investment = 1/2 * 200,000 = 100,000.
Bond investment = 1/4 * 200,000 = 50,000.
Mutual fund investment = 1/5 * 200,000 = 40,000.
Total investment thus far = 100,000 + 50,000 + 40,000 = 190,000.
Amount remaining for government certificate = 200,000 - 190,000 = 10,000. Success!

The correct answer is C.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 1462
Joined: Thu Apr 09, 2015 9:34 am
Location: New York, NY
Thanked: 39 times
Followed by:22 members

by Jeff@TargetTestPrep » Thu Dec 07, 2017 9:59 am
mariapazos wrote:If 1/2 of the money in a certain trust fund was invested in stocks, 1/4 in bonds, 1/5 in a mutual fund, and the remaining $10.000 in a government certificate, what was the total amount of the trust fund?

A.$100.000
B.$150.000
C.$200.000
D.$500.000
E.$2.000.000
If we let T = the total amount of the trust fund, we can create the following equation:

(1/2)T + (1/4)T + (1/5)T + 10,000 = T

Multiplying the entire question by 20 gives us:

10T + 5T + 4T + 200,000 = 20T

19T + 200,000 = 20T

200,000 = T

Answer: C

Jeffrey Miller
Head of GMAT Instruction
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews