Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond’s selling price, approximately what was the bonds selling price?
$4,063
$5,325
$5.351
$6,000
$6,154
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
BOND
This topic has expert replies
-
ssmiles08
- Master | Next Rank: 500 Posts
- Posts: 472
- Joined: Sun Mar 29, 2009 6:54 pm
- Thanked: 56 times
I think the key here is to read the question and translate it carefully.
1st sentence, they give you the interest. 5000*8/100 = 400
2nd sentence, they use that same interest in deriving something else.
400 = .065(selling price)
selling price ~ $6,150 which is closest to (E)
1st sentence, they give you the interest. 5000*8/100 = 400
2nd sentence, they use that same interest in deriving something else.
400 = .065(selling price)
selling price ~ $6,150 which is closest to (E)
