At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest, and each held the certificate of deposit through the end of 1990. If Jon invested x dollars and Krista invested $10,000, and if Jon earned interest in 1990 totaling $1200, what was the amount of interest that Krista earned on her $10,000 investment?
(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.
(2) In 1990, Jon invested $20,000 in the certificate of deposit.
OA D
Source: Princeton Review
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At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest,
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BTGmoderatorDC
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Say the rate of interest in r%.BTGmoderatorDC wrote: ↑Sat Jul 04, 2020 5:16 pmAt the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest, and each held the certificate of deposit through the end of 1990. If Jon invested x dollars and Krista invested $10,000, and if Jon earned interest in 1990 totaling $1200, what was the amount of interest that Krista earned on her $10,000 investment?
(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.
(2) In 1990, Jon invested $20,000 in the certificate of deposit.
OA D
Source: Princeton Review
So, we have to get the value of r% of 10,000 = $100r.
Let's take each statement one by one.
(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.
=> r = 6
The value of 100r = 100*6 = $600. Sufficient.
(2) In 1990, Jon invested $20,000 in the certificate of deposit.
Rate of interest = [1,200/20,000]*100% = 6%
This is the same information as we have in statement 1. Sufficient.
Correct answer: D
Hope this helps!
-Jay
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