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Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?
(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent
(2) He received a return of 8 percent from mutual fund B
(2) He received a return of 8 percent from mutual fund B
- a)Statement (1) ALONE is sufficient, but statement (2) alone is
not sufficient to answer the question asked - b)Statement (2) ALONE is sufficient, but statement (1) alone is
not sufficient to answer the question asked. - c)BOTH statements (1) and (2) TOGETHER are sufficient to
answer the question asked, but NEITHER statement ALONE
is sufficient to answer the question asked. - d)EACH statement ALONE is sufficient to answer the question
asked. - e)Statements (1) and (2) TOGETHER are NOT sufficient to
answer the question asked, and additional data specific to the
problem are needed.
Correct answer is option 'E'. Can you explain this answer?
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Verified Answer
Roger distributed a total investment of $1000 between mutual funds A a...
Step 1 & 2: Understand Question and Draw Inference
Given:
- Total investment = $1000
- Let investment in A = a dollars
- So, investment in B = 1000 – a dollars
- Total interest earned = 10% per annum
- = 10% of 1000 = $100 per annum
To find :a = ?
- Let Investment A give a return of x percent and Investment B give a return of y percent.
- Since Total interest earned = $100, we can write:
- Interest earned from Investment A + Interest earned from Investment B = 100
- Thus, in order to know the value of a, we need to know the value of x and y.
Step 3 : Analyze Statement 1 independent
(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent
- Note that the amount of total investment still remains $1000 only. Only the allocation of this amount between investments A and B has changed
- So, new investment in A = 1.5a
- New investment in B = 1000 – 1.5a
- Given: Combined yearly return = 11% of $1000 = $110
- (Return from Investment A) + (Return from Investment B) = 110
- This equation has 3 unknowns. Therefore, it is not sufficient to determine a unique value of a
Step 4 : Analyze Statement 2 independent
2) He received a return of 8 percent from mutual fund B
This equation has 2 unknowns. Not sufficient to find a unique value of x.
Step 5: Analyze Both Statements Together (if needed)
- Substituting y = 8 in (III) we get:
- ax - 8a = 2000
- This is the same as Equation (IV)
So, even after both statements together, we cannot find a unique value of a.
Answer: Option E
Most Upvoted Answer
Roger distributed a total investment of $1000 between mutual funds A a...
GMAT Problem Solving
Solution:
Given, total investment = $1000 and combined yearly return = 10%
Let the amount invested in mutual fund A be x
Then, the amount invested in mutual fund B = 1000 - x
Total return = 10% of 1000 = $100
Return from mutual fund A = 0.1x
Return from mutual fund B = 0.1(1000 - x)
Statement 1: Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent
If Roger had invested 1.5x in mutual fund A and 0.5x in mutual fund B, then the total investment would be 1.5x + 0.5x = 2x and the total return would be 0.11(2x) = 0.22x
0.1x + 0.1(1000 - x) = 0.22x
10x + 1000 - 10x = 22x
12x = 1000
x = $83.33
Statement 1 alone is sufficient to answer the question.
Statement 2: He received a return of 8 percent from mutual fund B
0.1x + 0.08(1000 - x) = 100
0.02x = 20
x = $1000
Statement 2 alone is not sufficient to answer the question.
Therefore, the answer is option E - Statements (1) and (2) together are not sufficient to answer the question asked, and additional data specific to the problem are needed.
Solution:
Given, total investment = $1000 and combined yearly return = 10%
Let the amount invested in mutual fund A be x
Then, the amount invested in mutual fund B = 1000 - x
Total return = 10% of 1000 = $100
Return from mutual fund A = 0.1x
Return from mutual fund B = 0.1(1000 - x)
Statement 1: Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent
If Roger had invested 1.5x in mutual fund A and 0.5x in mutual fund B, then the total investment would be 1.5x + 0.5x = 2x and the total return would be 0.11(2x) = 0.22x
0.1x + 0.1(1000 - x) = 0.22x
10x + 1000 - 10x = 22x
12x = 1000
x = $83.33
Statement 1 alone is sufficient to answer the question.
Statement 2: He received a return of 8 percent from mutual fund B
0.1x + 0.08(1000 - x) = 100
0.02x = 20
x = $1000
Statement 2 alone is not sufficient to answer the question.
Therefore, the answer is option E - Statements (1) and (2) together are not sufficient to answer the question asked, and additional data specific to the problem are needed.
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Community Answer
Roger distributed a total investment of $1000 between mutual funds A a...
Step 1 & 2: Understand Question and Draw Inference
Given:
- Total investment = $1000
- Let investment in A = a dollars
- So, investment in B = 1000 – a dollars
- Total interest earned = 10% per annum
- = 10% of 1000 = $100 per annum
To find :a = ?
- Let Investment A give a return of x percent and Investment B give a return of y percent.
- Since Total interest earned = $100, we can write:
- Interest earned from Investment A + Interest earned from Investment B = 100
- Thus, in order to know the value of a, we need to know the value of x and y.
Step 3 : Analyze Statement 1 independent
(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent
- Note that the amount of total investment still remains $1000 only. Only the allocation of this amount between investments A and B has changed
- So, new investment in A = 1.5a
- New investment in B = 1000 – 1.5a
- Given: Combined yearly return = 11% of $1000 = $110
- (Return from Investment A) + (Return from Investment B) = 110
- This equation has 3 unknowns. Therefore, it is not sufficient to determine a unique value of a
Step 4 : Analyze Statement 2 independent
2) He received a return of 8 percent from mutual fund B
This equation has 2 unknowns. Not sufficient to find a unique value of x.
Step 5: Analyze Both Statements Together (if needed)
- Substituting y = 8 in (III) we get:
- ax - 8a = 2000
- This is the same as Equation (IV)
So, even after both statements together, we cannot find a unique value of a.
Answer: Option E
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Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer?
Question Description
Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer?.
Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer?.
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ample number of questions to practice Roger distributed a total investment of $1000 between mutual funds A and B and received a combined yearly return of 10 percent. How much did he invest in mutual fund A?(1) Had he increased the share of mutual fund A in his total investment by 50 percent, he would have received a combined yearly return of 11 percent(2) He received a return of 8 percent from mutual fund Ba)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question askedb)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question asked.c)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'E'. Can you explain this answer? tests, examples and also practice GMAT tests.
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