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

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
Live EA class + 6 months of EA OnDemand
  • Expert-led weekly online sessions
  • EA Masterclass access between classes
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

130-point score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 559 reviewsTarget Test Prep

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Investment

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 869
Joined: Wed Aug 26, 2009 3:49 pmFollowed by: 3 members
Location: California
Thanked: 13 times
by heshamelaziry » Mon Nov 02, 2009 7:29 pm
A certain investment grows at an annual interest rate of 8%, compounded quarterly. Which of the following equations can be solved to find the number of years, x, that it would take for the investment to increase by a factor of 16?

OA [spoiler]2 = (1.02)^x[/spoiler]
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |
Master | Next Rank: 500 Posts
Posts: 138
Joined: Mon Mar 02, 2009 12:02 pm
Thanked: 15 times

Re: Investment

by life is a test » Mon Nov 02, 2009 10:31 pm
heshamelaziry wrote:A certain investment grows at an annual interest rate of 8%, compounded quarterly. Which of the following equations can be solved to find the number of years, x, that it would take for the investment to increase by a factor of 16?

OA [spoiler]2 = (1.02)^x[/spoiler]
16=(1 + (0.08/4))^4x -> 16 = 1.02^4x -> taking the 4th root of either side --> 16 ^(1/4)= 1.02^(4x)^(1/4)-> 2=1.02^x

hope that helps.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 126
Joined: Wed Jun 24, 2009 1:12 pm
Location: Montreal
Thanked: 2 times
GMAT Score:510

Re: Investment

by ssuarezo » Tue Nov 03, 2009 10:02 pm
life is a test wrote:
heshamelaziry wrote:A certain investment grows at an annual interest rate of 8%, compounded quarterly. Which of the following equations can be solved to find the number of years, x, that it would take for the investment to increase by a factor of 16?

OA [spoiler]2 = (1.02)^x[/spoiler]
16=(1 + (0.08/4))^4x -> 16 = 1.02^4x -> taking the 4th root of either side --> 16 ^(1/4)= 1.02^(4x)^(1/4)-> 2=1.02^x

hope that helps.
LifeTest:

I got lost:
Why (0.08/4)? it's 8% quarterly, but when divided by 4, you get the rate monthly, right?, also, how did u get 4x? I think, it's the number of months, how did u get that number?

Thank you for your patience.
Silvia
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 124
Joined: Thu Jun 18, 2009 5:33 am
Thanked: 35 times

by NikolayZ » Wed Nov 04, 2009 2:29 am
Hey Ssuarezo

Look at the question stem, it says "annual interest rate" compounded quarterly. So, if there are 4 quarters in a year, it must be that the rate per a quarter might be found through division of annual interest rate by 4.
(0.08/4)=0.02
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Master | Next Rank: 500 Posts
Posts: 138
Joined: Mon Mar 02, 2009 12:02 pm
Thanked: 15 times

Re: Investment

by life is a test » Wed Nov 04, 2009 9:04 pm
ssuarezo wrote:
life is a test wrote:
heshamelaziry wrote:A certain investment grows at an annual interest rate of 8%, compounded quarterly. Which of the following equations can be solved to find the number of years, x, that it would take for the investment to increase by a factor of 16?

OA [spoiler]2 = (1.02)^x[/spoiler]
16=(1 + (0.08/4))^4x -> 16 = 1.02^4x -> taking the 4th root of either side --> 16 ^(1/4)= 1.02^(4x)^(1/4)-> 2=1.02^x

hope that helps.
LifeTest:

I got lost:
Why (0.08/4)? it's 8% quarterly, but when divided by 4, you get the rate monthly, right?, also, how did u get 4x? I think, it's the number of months, how did u get that number?

Thank you for your patience.
Silvia
the 8% is an annual rate, if it is componded quarterly then it will get rolled over 4 times in a year hence 4X and the rate each quarter will be 8%/4.

Hope that helps.
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1