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How much did Linda put?

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How much did Linda put?

by Dean Jones » Sun Jul 10, 2011 1:13 am
Hi Friends,

I am having difficulty in solving the below mentioned Data Sufficency problem. Need your help.

Linda put an amount of money into each of two new investments, A and B that pay simple annual interest. If the annual interest rate of investment B is 1 1/2 times that of investment A, what amount did Linda put into investment A

(1) The interest for 1 year is $50 for investment A and $150 for investment B
(2) The amount that Linda put into investment B is twice the amount that she put into investment A

OA after a little discussion.
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Source: — Data Sufficiency |
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by vineeshp » Sun Jul 10, 2011 6:44 am
Answer: E.

Let amounts be A,B.
IA = Interest for A: A * r /100
IB = Interest for B: B * r * 1.5 /100

Stmt 1:
IA = 50.
A * r /100 = 50
r = 50. 100 / A
IB = 150.
B * r * 1.5 /100 = 150.
r = 150 . 100 / B * 1.5
Equating r
150 . 100 / B * 1.5 = 50. 100 / A
Solving, we get A = B/2

not sufficient.
For any above A and B in the same ratio, a certain R can given the same interest.

Stmt 2: Restates what we got in 1.
Not sufficient.

1 and 2 combined: NO new info.

Hence E.

What is the OA?
Vineesh,
Just telling you what I know and think. I am not the expert. :)
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by Dean Jones » Sun Jul 10, 2011 9:08 am
OA is E
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