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Deposit

by showbu » Sat Jan 17, 2009 2:13 pm
Q10:
$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years is given by D(t) = 10,000 {1+(r/100)}t. What amount will the deposit grow to in 3 years?
(1) D(t) = 11,000
(2) r =10

A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.
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Source: — Data Sufficiency |
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by sachinkr » Sat Jan 17, 2009 10:12 pm
Statement 1: D(t) = 11,000, this statement is insufficient as t is not given, t can be 1,2 or 3. Although we know that we are required to compute total amount after 3 years, we cannot assume that D(t) refers to 3rd year amount.

Statement 2: r=10, using this we can compute D(3) from D(t) = 10,000 {1+(r/100)}t.

Ans (B)
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