Interest Rate

Lets say invested amount is $100
Interest rate per anum = 17%
Interest after 5 yrs = 100*17*5/100

5 yr interest rate = R%
Interest = 100*R*1/100
R = 85

Option A

Somehow all your questions seem incomplete.. Whats the source of these questions?

If I did interpret it right,
Let initial amount = 100 and the amount be compounded annually

Amount after 5 years = 100 * (1.17)^5 ~ 219

% increase = (219-100)/100 * 100 = [spoiler]119%[/spoiler]

I completely agree with shankar. Can you please post the source of this GMAT question ? and if it is not a GMAT question, can you please refrain from posting them ?

I don't understand why I should refrain from posting my questions.why do you restrict yourself to authoritative questions.you are preparing for MBA, don't forget it.you should be able to manage.my questions are from a GMAT-like source compiled by a teacher in Iran.I mentioned it in my previous posts.so don't be so fussy about the source.answer the questions if you can,If there is a logical error in my question correct it and mention it,I will appreciate you.remember we are here to communicate and help each other to be good managers!

If I did interpret it right,
Let initial amount = 100 and the amount be compounded annually

there is no need to interpret.let the initial amount be x.

Amount after 5 years = x * (1.17)^5 ~ 2.19x
% increase = (2.19x-x)/x *100 =119%

oldheaven wrote:

If I did interpret it right,
Let initial amount = 100 and the amount be compounded annually

there is no need to interpret.let the initial amount be x.

Amount after 5 years = x * (1.17)^5 ~ 2.19x
% increase = (2.19x-x)/x *100 =119%

its not mentioned in the ques whether it was simple interest or compund interest

oldheaven wrote:I don't understand why I should refrain from posting my questions.why do you restrict yourself to authoritative questions.you are preparing for MBA, don't forget it.you should be able to manage.my questions are from a GMAT-like source compiled by a teacher in Iran.I mentioned it in my previous posts.so don't be so fussy about the source.answer the questions if you can,If there is a logical error in my question correct it and mention it,I will appreciate you.remember we are here to communicate and help each other to be good managers!

Oldhaven, You clearly have misunderstood my last post. I do appreciate that we are here to help each other in the GMAT-MBA journey but posting these questions doesn't serve the purpose as the questions are not as clear and complete as you think they are(including this) and might dampen the morale of the fellow users. I hope you understand the purpose of the forum. Moreover, GMAT tests more subtle, not-so-complicated problems unlike the questions posted in this thread. I am sorry if you are offended by me asking you to refrain from posting. I meant in a very polite way.