Pat’s Investment

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Pat invested $4,000 at a percent simple annual interest and a different amount at p percent simple annual interest for the same period of time. What amount did Pat invest at p percent simple annual interest?

(1) The total amount of interest earned by Pat's investments in one year was $400.

(2) Pat invested the $4,000 at 4 percent simple annual interest.

Review: Pat's Investment




Explanation

We have a lot of missing information in the question prompt. The two amounts and two interest rates are four pieces of information, and we start with only one of them defined. The second amount is what we are looking for. Call that X. We turn to the data statements, evaluating separately first. Statement (1) indicates that the total amount of interest was $400. That means



A bunch of variables are still missing. Even if the two interest rates were the same, we wouldn't have enough information. Insufficient. On to Statement (2). Statement (2) defines a for us. Without Statement (1), this tells us precious little; it sheds light on the first investment but no light on the second. Insufficient. And when we combine the statements, we get



We still have one equation with two variables. So the statements together are insufficient.

The correct answer is (E).


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