• NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    NEW! FREE Beat The GMAT Quizzes
    Hundreds of Questions Highly Detailed Reporting Expert Explanations TAKE A FREE GMAT QUIZ
  • 7 CATs FREE!
    If you earn 100 Forum Points

    Engage in the Beat The GMAT forums to earn
    100 points for $49 worth of Veritas practice GMATs FREE

    Veritas Prep
    VERITAS PRACTICE GMAT EXAMS
    Earn 10 Points Per Post
    Earn 10 Points Per Thanks
    Earn 10 Points Per Upvote
    REDEEM NOW

Word problems

This topic has 2 expert replies and 0 member replies

Word problems

Post
A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale?

(A) 800d
(B) 7d/5
(C) d/20+40
(D) d/2
(E) 7d/100
OA is e

Can anyone help me out here with this question? i will gladly appcreciate
thank you

  • +1 Upvote Post
  • Quote
  • Flag

GMAT/MBA Expert

Legendary Member
Joined
14 Jan 2015
Posted:
2667 messages
Followed by:
122 members
Upvotes:
1153
GMAT Score:
770
Post
Roland2rule wrote:
A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale?

(A) 800d
(B) 7d/5
(C) d/20+40
(D) d/2
(E) 7d/100
OA is e

Can anyone help me out here with this question? i will gladly appcreciate
thank you
Say d = $100.
After increasing by 40% the value of the investment = 100 + 40 = 140.
Each of 20 friends will receive 140/20 = $7.

Now plug 100 in for d and see what gives us 7. Only E works.

_________________
Veritas Prep | GMAT Instructor

Veritas Prep Reviews
Save $100 off any live Veritas Prep GMAT Course

  • +1 Upvote Post
  • Quote
  • Flag
Enroll in a Veritas Prep GMAT class completely for FREE. Wondering if a GMAT course is right for you? Attend the first class session of an actual GMAT course, either in-person or live online, and see for yourself why so many students choose to work with Veritas Prep. Find a class now!

GMAT/MBA Expert

Post
Roland2rule wrote:
A group of 20 friends formed an investment club, with each member contributing an equal amount to the general fund, which amounted to d dollars, in Stock X. The value of the stock subsequently increased 40 percent, at which point the stock was sold and the proceeds divided evenly amoung the members. In terms of d, how much money did each member of the club receive from the sale?

(A) 800d
(B) 7d/5
(C) d/20+40
(D) d/2
(E) 7d/100
After the stock increased by 40%, the new value was 1.4d.

Thus, each of the 20 members received 1.4d/20 = 14d/200 = 7d/100.

Answer: E

_________________

Jeffrey Miller
Head of GMAT Instruction
jeff@targettestprep.com



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

  • +1 Upvote Post
  • Quote
  • Flag
  • Magoosh
    Magoosh
    Study with Magoosh GMAT prep

    Available with Beat the GMAT members only code

    MORE DETAILS
    Magoosh
  • EMPOWERgmat Slider
    1 Hour Free
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    EMPOWERgmat Slider
  • e-gmat Exclusive Offer
    Get 300+ Practice Questions
    25 Video lessons and 6 Webinars for FREE

    Available with Beat the GMAT members only code

    MORE DETAILS
    e-gmat Exclusive Offer
  • Kaplan Test Prep
    Free Practice Test & Review
    How would you score if you took the GMAT

    Available with Beat the GMAT members only code

    MORE DETAILS
    Kaplan Test Prep
  • PrepScholar GMAT
    5 Day FREE Trial
    Study Smarter, Not Harder

    Available with Beat the GMAT members only code

    MORE DETAILS
    PrepScholar GMAT
  • Varsity Tutors
    Award-winning private GMAT tutoring
    Register now and save up to $200

    Available with Beat the GMAT members only code

    MORE DETAILS
    Varsity Tutors
  • The Princeton Review
    FREE GMAT Exam
    Know how you'd score today for $0

    Available with Beat the GMAT members only code

    MORE DETAILS
    The Princeton Review
  • Target Test Prep
    5-Day Free Trial
    5-day free, full-access trial TTP Quant

    Available with Beat the GMAT members only code

    MORE DETAILS
    Target Test Prep
  • Economist Test Prep
    Free Trial & Practice Exam
    BEAT THE GMAT EXCLUSIVE

    Available with Beat the GMAT members only code

    MORE DETAILS
    Economist Test Prep
  • Veritas Prep
    Free Veritas GMAT Class
    Experience Lesson 1 Live Free

    Available with Beat the GMAT members only code

    MORE DETAILS
    Veritas Prep

Top First Responders*

1 Ian Stewart 53 first replies
2 Brent@GMATPrepNow 36 first replies
3 Jay@ManhattanReview 29 first replies
4 GMATGuruNY 25 first replies
5 ceilidh.erickson 15 first replies
* Only counts replies to topics started in last 30 days
See More Top Beat The GMAT Members

Most Active Experts

1 image description Scott@TargetTestPrep

Target Test Prep

199 posts
2 image description Max@Math Revolution

Math Revolution

90 posts
3 image description Brent@GMATPrepNow

GMAT Prep Now Teacher

76 posts
4 image description Ian Stewart

GMATiX Teacher

62 posts
5 image description GMATGuruNY

The Princeton Review Teacher

44 posts
See More Top Beat The GMAT Experts