For which type of investment, J or K, is the annual rate of

[swerve]

For which type of investment, J or K, is the annual rate of return greater?

1) Type J returns $115 per $1,000 invested for anyone-year period and type K returns $300 per $2,500 invested anyone-year period.
2) The annual rate of return for an investment of type K is 12 percent.

The OA is A

Source: GMAT Paper Tests

[Jay@ManhattanReview]

For which type of investment, J or K, is the annual rate of return greater?

1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested anyone-year period.
2) The annual rate of return for an investment of type K is 12 percent.

The OA is A

Source: GMAT Paper Tests

Let's take each statement one by one.

1) Type J returns $115 per $1,000 invested for any one-year period and type K returns $300 per $2,500 invested anyone-year period.

"¢ J's rate of interest: (115/1,000)*100% = 11.5%
"¢ K's rate of interest: (300/2,500)*100% = 12% > 11.5%.

2) The annual rate of return for an investment of type K is 12 percent.

No information about type J investment. Insufficient.

The correct answer: A

Hope this helps!

-Jay
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Manhattan Review

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