Problem Solving

Jim invests in $12805 in 4% stock at 98.5. When the value of the stock increased to 102.375, he sold it and invested in 4.5% stock at 105.625. Find the change in his income.

1. Increase by $32
2. Increase by $65
3. Decrease by $31
4. Increase by $47

I'm not sure what the following means - "invests in $12805 in 4% stock at 98.5"

The amount invested is 12805 @98.5 per share. But what does it mean by 4% stock?

cypherskull wrote:Jim invests in $12805 in 4% stock at 98.5. When the value of the stock increased to 102.375, he sold it and invested in 4.5% stock at 105.625. Find the change in his income.

1. Increase by $32
2. Increase by $65
3. Decrease by $31
4. Increase by $47

I'm not sure what the following means - "invests in $12805 in 4% stock at 98.5"

The amount invested is 12805 @98.5 per share. But what does it mean by 4% stock?

Hi!

I'm not sure where you're getting these questions, but they, for the most part, suck. Each one only has 4 choices, they often have awkward or ambiguous language and test concepts far beyond (and irrelevant to) the GMAT.

If you're actually studying for the GMAT, I'd avoid this source entirely. Where are they questions from?

Hi Stuart,

I'm getting these questions from a GMAT community I'm subscribed. I'm aware that GMAT questions come with 5 options rather than 4. The reason I'm posting these questions is because they were a bit of a challenge and so I thought its probably worth a try as they'd help me prepare for easier questions of the same type! The link to one of these question sets is included below (since you asked for the source):

https://gmatglobal.blogspot.in/2012/05/g ... nline.html

Stuart Kovinsky wrote:

cypherskull wrote:Jim invests in $12805 in 4% stock at 98.5. When the value of the stock increased to 102.375, he sold it and invested in 4.5% stock at 105.625. Find the change in his income.

1. Increase by $32
2. Increase by $65
3. Decrease by $31
4. Increase by $47

I'm not sure what the following means - "invests in $12805 in 4% stock at 98.5"

The amount invested is 12805 @98.5 per share. But what does it mean by 4% stock?

Hi!

I'm not sure where you're getting these questions, but they, for the most part, suck. Each one only has 4 choices, they often have awkward or ambiguous language and test concepts far beyond (and irrelevant to) the GMAT.

If you're actually studying for the GMAT, I'd avoid this source entirely. Where are they questions from?

I agree with Stuart. Please avoid this source. More than the number of options, it's important that you solve problems whose language is structured similar to that of a GMAT problem.

There is better GMAT material out there.