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

Redeem

si and ci

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Master | Next Rank: 500 Posts
Posts: 123
Joined: Mon Feb 07, 2011 12:11 pm
Followed by:1 members

si and ci

by rupsk » Thu Aug 18, 2011 3:04 am
The difference between the compound interest compounded annually and simple interest for 2 years at 20% per annum is $144. find the principal


A. $3900
B. $3000
C. $3300
D. $3600
E. $3400

please explain concept of difference between CI and SI for 2 years and 3 years. Thanks
Top
Source: — Problem Solving |
User avatar
Legendary Member
Posts: 582
Joined: Tue Mar 08, 2011 12:48 am
Thanked: 61 times
Followed by:6 members
GMAT Score:740

by force5 » Thu Aug 18, 2011 10:13 am
The answer to the question is D

Compound interest = x(1.2)^2-x ( x is the principal)
= 0.44x
SI = 0.4x
difference = 0.04x = 144 (gvn)
hence x = $3600
Top
Post new topic Post Reply
• Page 1 of 1