BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

At what simple annual interest rate must \(\$2,500\) be invested if it is to earn \(\$225\) in interest in one year?

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Moderator
Posts: 2058
Joined: Sun Oct 29, 2017 4:24 am
Thanked: 1 times
Followed by:5 members

At what simple annual interest rate must \(\$2,500\) be invested if it is to earn \(\$225\) in interest in one year?

by M7MBA » Fri Jan 14, 2022 9:15 am

Timer

00:00

Your Answer

A

B

C

D

E

Global Stats

At what simple annual interest rate must \(\$2,500\) be invested if it is to earn \(\$225\) in interest in one year?

(A) \(6\%\)
(B) \(7\%\)
(C) \(8\%\)
(D) \(9\%\)
(E) \(10\%\)

Answer: D

Source: GMAT Prep
Top
Source: — Problem Solving |

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16207
Joined: Mon Dec 08, 2008 6:26 pm
Location: Vancouver, BC
Thanked: 5254 times
Followed by:1268 members
GMAT Score:770

Re: At what simple annual interest rate must \(\$2,500\) be invested if it is to earn \(\$225\) in interest in one year?

by Brent@GMATPrepNow » Sat Jan 15, 2022 7:56 am
M7MBA wrote: ↑
Fri Jan 14, 2022 9:15 am
 At what simple annual interest rate must \(\$2,500\) be invested if it is to earn \(\$225\) in interest in one year?

(A) \(6\%\)
(B) \(7\%\)
(C) \(8\%\)
(D) \(9\%\)
(E) \(10\%\)

Answer: D

Source: GMAT Prep
Let x = the PERCENT annual interest rate

So, we want: x percent of $2,500 = 225
Rewrite as: x/100 of $2,500 = 225
In other words: (x/100)(2,500) = 225
Simplify: 2500x/100 = 225
Simplify again: 25x = 225
Solve: x = 225/25 = 9

Answer: D

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Post new topic Post Reply
• Page 1 of 1