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Interest Rate problem

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by gmat009 » Tue Oct 07, 2008 9:06 pm
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 1 percent, what was the annual interest rate last year?
A. 1% B. 1.1% C. 9.1% D. 10% E. 10.8%
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by stop@800 » Wed Oct 08, 2008 1:46 am
I feel there is some gap in values


The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 1 percent, what was the annual interest rate last year?
A. 1% B. 1.1% C. 9.1% D. 10% E. 10.8%

Is the Ans C?
if the ans is C
than the 1 mentioned above in Red should be 10.....

please confirm
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by vishubn » Wed Oct 08, 2008 1:58 am
ya same here !!
if we go on to solve with assuming the question to0 be right ! u come back to 1 percent again

there is something wrong but i kinda rememebr seeing similar post !
where the OA was 9.1%


Vishu
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by gmat009 » Wed Oct 08, 2008 3:40 pm
stop@800 wrote:I feel there is some gap in values


The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 1 percent, what was the annual interest rate last year?
A. 1% B. 1.1% C. 9.1% D. 10% E. 10.8%

Is the Ans C?
if the ans is C
than the 1 mentioned above in Red should be 10.....

please confirm
OA is A
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by Rashmi1804 » Fri Mar 20, 2009 12:09 pm
Let the interest rate last year be r

this year there is an increase of 10% in r => Interest rate = 1.1r

given that this year's interest rate is 1% = > 1.1r =1%

=> r= 1%/1.1
=> r = 0.909 %

But none of the options is 0.91%
The OA is 9.1%

I guess that's a typo....

Note: For those who are confused with interest rate ....Interest rate is represented in terms of % so no need to multiply r with 100 again.
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by Jeff@TargetTestPrep » Thu Dec 14, 2017 4:11 pm
gmat009 wrote:The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 1 percent, what was the annual interest rate last year?
A. 1% B. 1.1% C. 9.1% D. 10% E. 10.8%
We can create the following equation in which x = the interest rate last year:

1.1x = 0.11

x = 0.11/1.1 = 11/110 = 1/10 = 0.1 = 10%

Answer: D

Jeffrey Miller
Head of GMAT Instruction
[email protected]

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