Hi Experts,
Can you please help with the attached problem.
Thanks,
Karthik.
Interest
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An investment of d dollars at k percent simple annual interest yields $600 over a 2-year period.An investment of d dollars at k percent simple interest yields $600 interest over a 2-year period. In terms of d, what dollar amount invested at the same rate will yield $2,400 interest over a 3-year period?
A. 2d/3
B. 3d/4
C. 4d/3
D. 3d/2
E. 8d/3
In other words, an investment of d dollars yields $300 in interest each year.
What dollar amount invested at the same rate will yield $2,400 interest over a 3-year period?
In other words, how much money must we invest to earn $800 in interest each year?
If a d dollar investment yields $300 in interest each year, then:
- a 2d dollar investment would yield $600 (2 times $300) in interest each year
- a 3d dollar investment would yield $900 (3 times $300) in interest each year
- a 4d dollar investment would yield $1200 (4 times $300) in interest each year
- etc.
So, to increase the annual interest from $300 to $800, we must invest 800/300 times as much money.
800/300 = 8/3, so we must invest (8/3)d dollars [aka 8d/3 dollars]
Answer = E
Cheers,
Brent
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Over 1 year...
(i) d * (100+k)/100 = (d + 600)/2
(ii) D * (100+k)/100 = (D + 2400)/3
Can anyone help solve this to get D/d???
Thanks
(i) d * (100+k)/100 = (d + 600)/2
(ii) D * (100+k)/100 = (D + 2400)/3
Can anyone help solve this to get D/d???
Thanks
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Hi Mathsbuddy,
First off, you can simplify your equations by focusing on the INTEREST ONLY.
D dollars at K percent simple interest for 2 years = $600
D(K/100)(2) = 600
This becomes....
DK = 30,000
Now we have to look at....
E dollars at K percent simple interest for 3 years = $2400
E(K/100)(3) = 2400
EK = 80,000
So, we need to go from 30,000 to 80,000. What do we need to multiply by? 8/3.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
First off, you can simplify your equations by focusing on the INTEREST ONLY.
D dollars at K percent simple interest for 2 years = $600
D(K/100)(2) = 600
This becomes....
DK = 30,000
Now we have to look at....
E dollars at K percent simple interest for 3 years = $2400
E(K/100)(3) = 2400
EK = 80,000
So, we need to go from 30,000 to 80,000. What do we need to multiply by? 8/3.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
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The interest rate is irrelevant.An investment of d dollars at k percent simple interest yields $600 interest over a 2-year period. In terms of d, what dollar amount invested at the same rate will yield $2,400 interest over a 3-year period?
A. 2d/3
B. 3d/4
C. 4d/3
D. 3d/2
E. 8d/3
This problem is really about a PROPORTION.
$d invested over 2 years is equivalent to $600 in interest.
$x invested over 3 years must be equivalent to $2400 in interest.
Thus:
(d * 2)/600 = (x * 3)/2400
d/300 = x/800
d/3 = x/8
x = (8d)/3.
The correct answer is E.
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Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
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