Official Guide Explanation:
Problem Solving #165

 

 

Background

This is just one of hundreds of free explanations I've created to the quantitative questions in The Official Guide for GMAT Quantitative Review (2nd ed.). Click the links on the question number, difficulty level, and categories to find explanations for other problems.

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Solution and Metadata

Question: 165
Page: 84
Difficulty: 5 (Moderate)
Category 1: Arithmetic > Fractions >
Category 2: Word Problems > Other >

Explanation: Given fractions and actual numbers, the goal is almost always to find the relationship between them. In this case, we want to find what fraction of the total that $10,000 represents. The amount in a government certificate is what's left over aside from the amount in stocks, bonds, and mutual funds, which can be expressed as 1 - (1/2) - (1/4) - (1/5) = (20/20) - (10/20) - (5/20) - (4/20) = ((20 - 10 - 5 - 4)/20) = (1/20). If (1/20) of the total is $10,000, then:

(1/20)t = 10,000

t = 10,000(20) = 200,000, choice (C).

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