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

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

Simple & Compound Interest

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 124
Joined: Sun Mar 07, 2010 3:15 pm
Thanked: 1 times
by francoisph » Mon Jun 21, 2010 6:49 am
Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received $ 550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received $605 as interest. What was the value of his total savings before investing in these two bonds?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
User avatar
Master | Next Rank: 500 Posts
Posts: 294
Joined: Wed May 05, 2010 4:01 am
Location: india
Thanked: 57 times

by amising6 » Mon Jun 21, 2010 7:05 am
francoisph wrote:Shawn invested one half of his savings in a bond that paid simple interest for 2 years and received $ 550 as interest. He invested the remaining in a bond that paid compound interest, interest being compounded annually, for the same 2 years at the same rate of interest and received $605 as interest. What was the value of his total savings before investing in these two bonds?
now another simple formula
diffrence between s.i and compound interest for 2 year=pr^2/100(only for 2 yaer)
c.i -s.i=pr^2/100
605-550=pr^2/100
need r to find the answer

need to check this formula
Last edited by amising6 on Mon Jun 21, 2010 7:14 am, edited 1 time in total.
Ideation without execution is delusion
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
User avatar
Master | Next Rank: 500 Posts
Posts: 294
Joined: Wed May 05, 2010 4:01 am
Location: india
Thanked: 57 times

by amising6 » Mon Jun 21, 2010 7:13 am
compound interest remain same as simple interest for first year
in second year compound interset=s.i+interest earned on S.i
605=550+((r/100)*550)
(55*100)/550=r
10=r

s.i=prt/100
550=(p*10*2)/100
550*5=p
principle=2750
answer
Ideation without execution is delusion
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Tue Jun 01, 2010 10:58 pm

by tingle15 » Mon Jun 21, 2010 11:28 am
@amising6: Please tell me if I derived the formula given by you correctly...

A = P[1+(R/100)]^2
A = P[1+(R/100)^2+(2R/100)]
A - P = P(R/100)^2 + (2PR/100)
A - P = (2PR/100) + [(2PR/100)(R)]/2*100
CI = SI + (1/2)*Interest on SI

605 = 550+(1/2)(550*R)/100

Hence R = 20%
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Senior | Next Rank: 100 Posts
Posts: 56
Joined: Tue Jan 13, 2009 12:59 pm
Location: Toronto
Thanked: 1 times

by odod » Mon Jun 21, 2010 2:59 pm
if r = 20% then:
20%/100% = $550/x, x = $2,750. Since this is half of his savings, then total savings = $2,750*2=$5,500

What is the OA?
ODOD
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 124
Joined: Sun Mar 07, 2010 3:15 pm
Thanked: 1 times

by francoisph » Mon Jun 21, 2010 3:11 pm
principle=2750
answer
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Newbie | Next Rank: 10 Posts
Posts: 3
Joined: Tue Jun 01, 2010 10:58 pm

by tingle15 » Mon Jun 21, 2010 11:02 pm
550 = P(20)(2)/100

P = 1375

The total savings would be 2*1375 = 2750
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1