Last year a certain bond with a face value of 5000 yielded 8 percent of its face value in interest. If that interest was apporximately 6.5% of the bond's selling price, approximately what was the bond's selling price?
A) 4063
B) 5325
C) 5351
D) 6000
E) 6154
Can someone please explain their answer as well, the correct answer is down below
The answer is E 6154
GMAT PREP (Interest)
This topic has expert replies
Sale price= (8/6.5)*5000
Since 8/6.5 is larger than 1, so we know that the sale price is greater than 5000. Since you do not have a calculator, you need to estimate the result.
By looking at 8 divided by 6.5, we can estimate that the correct answer is either D or E. For the sale price to be equal to 6000, 8 divided 6.5 should be equal to 1.2, which is not the case and so the answer is E.
Since 8/6.5 is larger than 1, so we know that the sale price is greater than 5000. Since you do not have a calculator, you need to estimate the result.
By looking at 8 divided by 6.5, we can estimate that the correct answer is either D or E. For the sale price to be equal to 6000, 8 divided 6.5 should be equal to 1.2, which is not the case and so the answer is E.
relaxin99 wrote:Last year a certain bond with a face value of 5000 yielded 8 percent of its face value in interest. If that interest was apporximately 6.5% of the bond's selling price, approximately what was the bond's selling price?
A) 4063
B) 5325
C) 5351
D) 6000
E) 6154
Can someone please explain their answer as well, the correct answer is down below
The answer is E 6154
Ossa Elhadary, PhD, CISA, PMP
Math Specialist
Test Prep New York
maximize your score, minimize your stress
www.testprepny.com
[email protected]
Math Specialist
Test Prep New York
maximize your score, minimize your stress
www.testprepny.com
[email protected]