e-GMAT
A moneylender lent $2000 to Ricky with the condition that Ricky will pay back 5 percent of this amount every half year. Till Ricky repaid the original loan amount (principal) completely, the moneylender charged interest equal to 5 percent per quarter on the original loan amount. Ricky always made interest payments and principal repayments on time. (For example, at the end of the first quarter, Ricky paid the moneylender 5 percent of $2000 as interest and at the end of 6 months, Ricky paid the money lender 5 percent of $2000 as interest and 5 percent of $2000 as principal repayment). What was the total amount in dollars that Ricky paid to the moneylender?
A. $4000
B. $6000
C. $7200
D. $8000
E. $11200
OA B
A moneylender lent $2000 to Ricky with the condition that Ricky will pay back 5 percent of this amount every half year. Till Ricky repaid the original loan amount (principal) completely, the moneylender charged interest equal to 5 percent per quarter on the original loan amount. Ricky always made interest payments and principal repayments on time. (For example, at the end of the first quarter, Ricky paid the moneylender 5 percent of $2000 as interest and at the end of 6 months, Ricky paid the money lender 5 percent of $2000 as interest and 5 percent of $2000 as principal repayment). What was the total amount in dollars that Ricky paid to the moneylender?
A. $4000
B. $6000
C. $7200
D. $8000
E. $11200
OA B
