Interest Rate Problem - GMAT PREP Test

This topic has expert replies
Newbie | Next Rank: 10 Posts
Posts: 2
Joined: Mon Sep 22, 2008 3:27 pm

Interest Rate Problem - GMAT PREP Test

by bakosu » Tue Jan 20, 2009 6:15 pm
An investment of D dollars at K percent simple interest rate yields $600 over a two year period. In terms of d, what dollar amount invested at the same rate will yield $2400 interest over a 3year period?

A.) 2/d3

B.) 3d/4

C.) 4d/3

D.) 3d/2

E.) 8d/3

Any help on this would be great!
Source: — Problem Solving |

Master | Next Rank: 500 Posts
Posts: 424
Joined: Sun Dec 07, 2008 5:15 pm
Location: Sydney
Thanked: 12 times
bakosu wrote:An investment of D dollars at K percent simple interest rate yields $600 over a two year period. In terms of d, what dollar amount invested at the same rate will yield $2400 interest over a 3year period?

A.) 2/d3

B.) 3d/4

C.) 4d/3

D.) 3d/2

E.) 8d/3

Any help on this would be great!
IMO E

eqn 1

600 = D*K* 2/100


eqn 2

Let principal be X

2400 = X*K*3/100

divide 1 by 2

hence

X= 8D/3