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

Redeem

Interest problem

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Junior | Next Rank: 30 Posts
Posts: 18
Joined: Sat Apr 25, 2009 5:05 am
Thanked: 1 times

Interest problem

by GMAT12 » Thu May 14, 2009 11:09 am
If money is invested at r percent interest,compounded annually,the amount of investment will double in approximately 70/r years. If Pat's parents invested $ 5000 in a long term bond that pays 8 percent interest,compounded annually, what will be the approximate total amount of investment 18 years later,when Pat is ready for college?

A)$20000
B)$15000
C)$12000
D)$10000
E)$9000
Top
Source: — Problem Solving |
User avatar
Community Manager
Posts: 1049
Joined: Sun Apr 06, 2008 5:15 pm
Location: Pittsburgh, PA
Thanked: 113 times
Followed by:27 members
GMAT Score:710

by dmateer25 » Thu May 14, 2009 11:31 am
The money will double in 70/8 = 8.75 year or approximately 9 years

So in 9 years the money will be 10,000. and then it will double again in 9 years that will make it 20,000.


So A
Top
Post new topic Post Reply
• Page 1 of 1