Question

Two years ago, Arthur gave each of his five children 20 percent of his fortune to invest in any way they saw Fit. In the first year, three of the children, Alice, Bob, and Carol, each earned a profit of 50 percent on their Investments, while two of the children, Dave and Errol, lost 40 percent on their investments. In the second Year, Alice and Bob each earned a 10 percent profit, Carol lost 60 percent, Dave earned 25 percent in profit, And Errol lost all the money he had remaining. What percentage of Arthur's fortune currently remains?A. 93%B. 97%C. 100%D. 107%E. 120%

Answer 1

A. 93%

Explanation:

Two years ago, Arthur gave each of his five children 20 percent of his fortune to invest in any way they saw Fit.

So each children started with 0.2A, in which A is Arthur's fortune.

Alice

In the first year, she earned a profit of 50 percent. In the second year, she earned a profit of 10%. So her part is

0.2A*(1+0.5)*(1 + 0.1) = 0.33A

Bob

In the first year he earned a profit of 50 percent. In the second year, he earned a profit of 10%. So his part is

0.2A*(1+0.5)*(1 + 0.1) = 0.33A

Carol

In the first year, she earned a profit of 50 percent. In the second year, she lost 60 percent. So

0.2A*(1+0.5)*(1-0.6) = 0.12A

Dave

In the first year, he lost 40 percent. In the second, he earned a profit of 25%. So

0.2A*(1-0.4)*(1 + 0.25) = 0.15A

Errol

Lost all the money he had. So he has 0A.

What percentage of Arthur's fortune currently remains?

This is the sum of the results of all five of his children.

0.33A + 0.33A + 0.12A + 0.15A = 0.93A

So the correct answer is:

A. 93%