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 →

Compound interest DS Q from Kaplan math WB 324 Q 22

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Junior | Next Rank: 30 Posts
Posts: 18
Joined: Fri Feb 20, 2009 8:37 pm
by nonimelb » Sun Mar 29, 2009 4:15 am
Following is a DS question. Please help me to explain the concept behind it. In my openion the answer should be 1 using the usual formula of compound interest but the book says it is 3 means statements 1 and 2 taken together are sufficient. Please try and explain which option is right?

Q: Mr. Daniels deposits $10,000 in a savings certificate, he earns p percent annual interest compounded quaterly. What is the value of p?
(1) During the term of the certificate , he earns $ 18 more than he would if the interest were not compounded.
(2) He withdraws all the money six months after depositing it.

What would be the answer choise

1,2,3,4,5?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Data Sufficiency |
Master | Next Rank: 500 Posts
Posts: 125
Joined: Sun Sep 16, 2007 1:38 pm
Thanked: 6 times

by chetanojha » Sun Mar 29, 2009 6:07 am
To find the value of P i.e. interest rate. You need the following information:

1. Total interest earned.
2. Period for which interest is earned i.e. 6 months, 1 years etc.

Now
Answer Choice 1: Only gives you total interest earned but not period. So NOT SUFFICIENT.

Answer Choice 2: Only gives you period for which interest is earned but not the amount. Hence NOT SUFFICIENT.

Taken Together you have all pre-requisite. Hence C.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 125
Joined: Sun Sep 16, 2007 1:38 pm
Thanked: 6 times

by chetanojha » Sun Mar 29, 2009 6:18 am
To find the value of P i.e. interest rate. You need the following information:

1. Total interest earned.
2. Period for which interest is earned i.e. 6 months, 1 years etc.

Now
Answer Choice 1: Only gives you total interest earned but not period. So NOT SUFFICIENT.

Answer Choice 2: Only gives you period for which interest is earned but not the amount. Hence NOT SUFFICIENT.

Taken Together you have all pre-requisite. Hence C.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 125
Joined: Sun Sep 16, 2007 1:38 pm
Thanked: 6 times

by chetanojha » Sun Mar 29, 2009 6:21 am
To find the value of P i.e. interest rate. You need the following information:

1. Total interest earned.
2. Period for which interest is earned i.e. 6 months, 1 years etc.

Now
Answer Choice 1: Only gives you total interest earned but not period. So NOT SUFFICIENT.

Answer Choice 2: Only gives you period for which interest is earned but not the amount. Hence NOT SUFFICIENT.

Taken Together you have all pre-requisite. Hence C.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Junior | Next Rank: 30 Posts
Posts: 18
Joined: Fri Feb 20, 2009 8:37 pm

by nonimelb » Sun Mar 29, 2009 9:06 am
1. During the term of the certificate , he earns $ 18 more than he would if the interest were not compounded.
now by looking at option 1 , what I get is that , if the interest were not compounded then the interest would have been SIMPLE INTEREST =principle*rate*time/100

so compound interest-simple interest= 18

Now I am not sure that should I bring in the simple interest concept here or not but there are 2 types of interests only, so if it is not compound, it has to be simple.

mmmmmmmmmmmmmmm what do you think?
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1