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Interest - GMATPrep Test 1

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by kwah » Wed Feb 22, 2012 5:44 pm
I have attached a question from GMATPrep Test.

Answer: E

I am stuck on this one, can someone please explain steps to achieve this result?

Thank you.
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by Anurag@Gurome » Wed Feb 22, 2012 6:49 pm
kwah wrote:I have attached a question from GMATPrep Test.

Answer: E

I am stuck on this one, can someone please explain steps to achieve this result?

Thank you.
Simple interest = Principal * Interest rate * Time

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period implies d * (k/100) * 2 = 600
So, k = 30000/d

Let us assume that $X invested at the same rate will yield $2,4,00 over a 3 year period.
Then X * (k/100) * 3 = 2400
X * 300/d * 3 = 2400 (By putting k = 30000/d)
So, X = [spoiler]8d/3[/spoiler]

The correct answer is E.
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by GMATGuruNY » Thu Feb 23, 2012 5:16 am
I posted a solution here:

https://www.beatthegmat.com/word-problem-t86535.html
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by kwah » Thu Feb 23, 2012 9:40 pm
Very helpful, thank you.
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