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by stephkhaira » Mon Aug 26, 2013 6:23 pm
This two-part analysis question appeared on the Integrated reasoning of a GMAC practice exam.

1) Loan X has a principal of 10000x and simple annual interest of 4%. Loan Y has a principal of 10000Y and simple annual interest of 8%. Both loans will be consolidated into loan Z, where the principal is (10000x+10000y) and simple interest is r%, where r=(4x+8y)/(x+y). What are x and y for r=.05?

[spoiler]ANSWERS: x=96, y=32 [/spoiler]
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by ganeshrkamath » Mon Aug 26, 2013 8:51 pm
stephkhaira wrote:This two-part analysis question appeared on the Integrated reasoning of a GMAC practice exam.

1) Loan X has a principal of 10000x and simple annual interest of 4%. Loan Y has a principal of 10000Y and simple annual interest of 8%. Both loans will be consolidated into loan Z, where the principal is (10000x+10000y) and simple interest is r%, where r=(4x+8y)/(x+y). What are x and y for r=.05?

[spoiler]ANSWERS: x=96, y=32 [/spoiler]
r = (4x+8y)/(x+y)
5 = (4x+8y)/(x+y)
5x + 5y = 4x + 8y
x = 3y

Look in the options for 2 values of x and y that satisfy the above condition.
In this case, [spoiler]x=96 and y=32[/spoiler]

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