Maria had $140{,}000$...... | Free GMAT Practice Question | GMAT Panda

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Maria had 140, 000 dollars. She spent part of it to buy a car. Of the remaining amount, she invested \frac{2}{5} of it at 4 percent simple annual interest and \frac{3}{5} of it at 7 percent simple annual interest. If after one year the total interest from both investments was 2, 900 dollars, what was the purchase price of the car?

Explanation	Calculations	Help
$We name the purchase price variable and express the remaining amount to invest.$	$x = purchase price of the car 140000 - x = remaining amount to invest$
$We calculate the weighted simple interest rate on the remaining amount.$	$\frac{2}{5} \times 4% + \frac{3}{5} \times 7% = \frac{8}{5} % + \frac{21}{5} % = \frac{29}{5} %$
$We translate the total interest income into an equation using the percent rate and the remaining amount.$	$(140000 - x) \times \frac{\frac{29}{5}}{100} = 2900$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We solve for the remaining amount by isolating 140000 - x .$	$140000 - x = 2900 \times \frac{100}{\frac{29}{5}}$
$We simplify the product by cancelling common factors.$	$2900 \times \frac{100}{\frac{29}{5}} = 2900 \times \frac{500}{29} = (29 \times 100) \times \frac{500}{29} = \frac{29 \times 100 \times 500}{29} = 100 \times 500 = 50000$	Theory & Tactics Method Card FDPR2-A Click to view full details
$We subtract the remaining amount from 140,000 to find the purchase price.$	$140000 - x = 50000 x = 140000 - 50000 = 90000$

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C

Maria had 140, 000 dollars. She spent part of it to buy a car. Of the remaining amount, she invested \frac{2}{5} of it at 4 percent simple annual interest and \frac{3}{5} of it at 7 percent simple annual interest. If after one year the total interest from both investments was 2, 900 dollars, what was the purchase price of the car?

Explanation	Calculations	Help
$We name the purchase price variable and express the remaining amount to invest.$	$x = purchase price of the car 140000 - x = remaining amount to invest$
$We calculate the weighted simple interest rate on the remaining amount.$	$\frac{2}{5} \times 4% + \frac{3}{5} \times 7% = \frac{8}{5} % + \frac{21}{5} % = \frac{29}{5} %$
$We translate the total interest income into an equation using the percent rate and the remaining amount.$	$(140000 - x) \times \frac{\frac{29}{5}}{100} = 2900$	Theory & Tactics Method Card FDPR4-A Click to view full details
$We solve for the remaining amount by isolating 140000 - x .$	$140000 - x = 2900 \times \frac{100}{\frac{29}{5}}$
$We simplify the product by cancelling common factors.$	$2900 \times \frac{100}{\frac{29}{5}} = 2900 \times \frac{500}{29} = (29 \times 100) \times \frac{500}{29} = \frac{29 \times 100 \times 500}{29} = 100 \times 500 = 50000$	Theory & Tactics Method Card FDPR2-A Click to view full details
$We subtract the remaining amount from 140,000 to find the purchase price.$	$140000 - x = 50000 x = 140000 - 50000 = 90000$

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C