Jackson invested $300,000, dividing it all unequally between

Expert replies

BTGmoderatorLU: Moderator; Posts: 2554; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Sat Dec 14, 2019 1:48 pm

Source: Magoosh

Jackson invested $300,000, dividing it all unequally between Account P and Account Q. At the end of the year, it turned out that Account P had earned 12% interest and Account Q had earned 25% interest. If Jackson earned a total of $60,000 in interest between the two accounts, which of the following is approximately the amount he put in account P?

A. $115,384
B. $120,000
C. $121,072
D. $124,129
E. $130,000

The OA is A

Like this post

Source: Beat The GMAT — Problem Solving | Sat Dec 14, 2019 1:48 pm

GMAT/MBA Expert

[email protected]: Elite Legendary Member; Posts: 10392; Joined: Sun Jun 23, 2013 6:38 pmFollowed by: 511 members; Location: Palo Alto, CA; Thanked: 2867 times; GMAT Score:800

by [email protected] » Sat Dec 14, 2019 3:00 pm

Hi All,

We're told that Jackson invested $300,000 between Account P and Account Q and at the end of one year, Account P had earned 12% interest and Account Q had earned 25% interest. If Jackson earned a total of $60,000 in interest between the two accounts, we're asked which of the following is APPROXIMATELY the amount he put in Account P. This question can be solved with 'system Algebra' or by TESTing THE ANSWERS.

Let's TEST Answer B: $120,000

IF.... $120,000 was invested at 12% interest, then the interest for this Account would be (.12)($120,000) = $14,400
The remaining $180,000 was invested at 25% interest, so the interest for this Account would be (.25)($180,000) = $45,000
Total interest generated = $14,400 + $45,000 = $59,400

This is fairly close to $60,000, but not close enough that this would be the answer. To INCREASE the amount of total interest, we need to invest MORE money in Account Q - and that means there would be LESS money in Account P. We need an investment that is less than $120,000 and there's only one answer left that 'fits.'

Final Answer: A

GMAT assassins aren't born, they're made,
Rich

Contact Rich at [email protected]

Like this post

GMAT/MBA Expert

Scott@TargetTestPrep: GMAT Instructor; Posts: 8154; Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members; Location: Los Angeles, CA; Thanked: 43 times

by Scott@TargetTestPrep » Sun Dec 22, 2019 7:32 pm

BTGmoderatorLU wrote:Source: Magoosh

Jackson invested $300,000, dividing it all unequally between Account P and Account Q. At the end of the year, it turned out that Account P had earned 12% interest and Account Q had earned 25% interest. If Jackson earned a total of $60,000 in interest between the two accounts, which of the following is approximately the amount he put in account P?

A. $115,384
B. $120,000
C. $121,072
D. $124,129
E. $130,000

The OA is A

We can let P = the amount invested in P and Q = the amount invested in Q and create the equations:

P + Q = 300,000

Q = 300,000 - P

and

0.12P + 0.25Q = 60,000

12P + 25Q = 6,000,000

Substituting 300,000 - P for Q, we have:

12P + 25(300,000 - P) = 6,000,000

12P + 7,500,000 - 25P = 6,000,000

1,500,000 = 13P

115,384 â‰ˆ P

Answer: A

Scott Woodbury-Stewart
Founder and CEO
[email protected]

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

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review