Interest....

This topic has expert replies
Senior | Next Rank: 100 Posts
Posts: 80
Joined: Mon Jan 31, 2011 10:08 pm
Followed by:2 members

Interest....

by kamalakarthi » Sun Oct 12, 2014 1:49 pm
Hi Experts, Can you please help me on this attached problem.
Attachments
3.JPG

GMAT Instructor
Posts: 2630
Joined: Wed Sep 12, 2012 3:32 pm
Location: East Bay all the way
Thanked: 625 times
Followed by:119 members
GMAT Score:780

by Matt@VeritasPrep » Sun Oct 12, 2014 9:31 pm
The key insight here is that r and n are the same for each person, so the ONLY variable that matters in the ratio is P: r and n will cancel in both the numerator and the denominator. Here's a visual:

Image

So we only need to know A in terms of B, and we're done. S1 tells us A/B = 1/4; SUFFICIENT. S2 tells us the same thing; SUFFICIENT.