X & Y entered into partnership with 700 and 6… | GMAT Sprint

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PS · Problem Solving

705-805

Fractions/Ratios/Decimals

X & Y entered into partnership with $700 and $600 respectively. After 3 months, X withdrew 2/7 of his stock but after 3 months, he puts back 3/5 of what he had withdrawn. The profit at the end of the year is $726. If the profit was shared according to time weighted investment, then what was the difference between the profits of those two friends?

Correct answer marked below

$360

$183

$36

Correct

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Explanation

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Official Explanation

Official

Since the funds change after 3 months in initial 6 months, let us check the quarterly investments.

First quarter: X =

700

, Y =

600

Second quarter: X =

700 - 200 = 500

(withdrew

\frac{2}{7}

of 700 = 200), Y =

600

Third and fourth quarter: X =

500 + 120 = 620

(puts back

\frac{3}{5}

of 200 = 120), Y =

600

…

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What this question tests

Your ability to convert between fractions, ratios, and decimals and to reason proportionally.

Cross-multiplying incorrectly or mixing up the ratio parts — a part:part ratio is not a fraction of the whole.