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percents

This topic has 2 expert replies and 2 member replies
kamalakarthi Senior | Next Rank: 100 Posts Default Avatar
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percents

Post Sun Aug 17, 2014 6:12 am
Elapsed Time: 00:00
  • Lap #[LAPCOUNT] ([LAPTIME])
    If $5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ?


    1. k=0.8p
    2. k=8

    This question is from OG. Can you please help me to solve and understand. Thanks in advance.

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    GMATinsight Legendary Member
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    Post Sun Aug 17, 2014 6:20 am
    kamalakarthi wrote:
    If $5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ?


    1. k=0.8p
    2. k=8

    This question is from OG. Can you please help me to solve and understand. Thanks in advance.
    Given : $5000 invested for one year at p percent simple annual interest yields $500

    i.e. (p/100)$5000 = $500
    i.e. p = 10%

    Question : Amount to be invested to earn $500 as interest at k% rate
    i.e. we need the value of k

    Statement 1) k = 0.8p
    i.e. k = 0.8 x 10 = 8%
    i.e. (k/100)X = $500
    i.e. (8/100)X = $500
    i.e. X = 500 x 12.5 = $6250
    Sufficient

    Statement 2) k = 8
    Same Process
    Sufficient

    Answer: Option D

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    Post Sun Aug 17, 2014 7:28 am
    kamalakarthi wrote:
    If $5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ?

    1) k = 0.8p
    2) k = 8

    The great thing about DS questions is that we aren't required to perform calculations if we know that we COULD perform those calculations. Here's what I mean:

    Target question: What amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ?

    Given: If $5000 invested for one year at p percent simple annual interest yields $500
    IMPORTANT: There's ONLY ONE possible value of p that will yield $500 interest after 1 year (if $5000 is invested). So, we COULD perform some calculations to determine that ONE VALUE of p.

    Statement 1: k = 0.8p
    Since we COULD determine the value of p, we COULD also determine the value of k Using the fact that k = 0.8p).
    Once we know the ONE value of k, we COULD determine how much money needs to be invested to get $500 in interest after 1 year.
    Since we can answer the target question with certainty, statement 1 is SUFFICIENT

    Statement 2: k = 8
    Perfect!
    Once we know the value of k, we COULD determine how much money needs to be invested to get $500 in interest after 1 year.
    Since we can answer the target question with certainty, statement 2 is SUFFICIENT

    Answer = D

    Cheers,
    Brent

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    Last edited by Brent@GMATPrepNow on Sun Aug 17, 2014 10:25 am; edited 1 time in total

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    GMATinsight Legendary Member
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    Post Sun Aug 17, 2014 7:42 am
    Hi Brent,

    I guess a typo error occurred while you were typing the answer option. You meant Option 'D' but typed it 'C' by mistake.. Smile

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    Post Sun Aug 17, 2014 10:26 am
    Thanks, Bhoopendra!

    I've edited my response.

    Cheers,
    Brent

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