Official Guide Explanation:
Data Sufficiency #D40

 

 

Background

This is just one of hundreds of free explanations I've created to the quantitative questions in The Official Guide for GMAT Review (12th ed.). Click the links on the question number, difficulty level, and categories to find explanations for other problems.

These are the same explanations that are featured in my "Guides to the Official Guide" PDF booklets. However, because of the limitations of HTML and cross-browser compatibility, some mathematical concepts, such as fractions and roots, do not display as clearly online.

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Solution and Metadata

Question: D40
Page: 25
Difficulty: 5 (Moderate)
Category 1: Word Problems > Interest Problems > Compound
Category 2: Word Problems > Interest Problems > Simple

Explanation: Since the numbers are simple, recognize that $500 on an investment $5,000 is 10%, so p = 10. To determine what must be invested at k percent to earn the same return, we need to know the value of k.

Statement (1) is sufficient. We know the value of p, so we can use it to find the value of k.

Statement (2) is also sufficient, as we're given k directly. Choice (D) is correct.

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