Each week Manhattan GMAT posts a GMAT question on our blog and follows up with the answer the next day. Are you up for the challenge?
Saul invests an amount of dollars in investment A at i% simple annual interest, another amount in investment B at j% simple annual interest, and a third amount in investment C at k% simple annual interest. If the percent interest rates i, j, and k are in a ratio of 3:2:4, what is the ratio of the average rate of interest on all three investments (taken together) to the interest rate on investment A?
(1) The amounts Saul invested in investments A, B, and C are in a ratio of 1:4:5.
(2) Saul’s three investments total $100,000, while the total amount of money he earns in interest in the first year is $18,600.
(A) Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
(B) Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
(C) BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
(D) EACH statement ALONE is sufficient.
(E) Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data are needed.
