BTGmoderatorDC wrote:In 2001, John invests x dollars in a special account that yields y% simple interest annually. If he has $250 in his account in 2006 and in 2008 he has $270 in his account, what is x + y?
(A) 5
(B) 25
(C) 200
(D) 205
(E) 210
OA D
Source: Magoosh
Given that the sum $x amounted to $250 in 2006 and to $270 in 2008, we can deduce that the simple interest on $x for 2 years = 270 - 250 = $20
Thus, 20 = x*y*2/100 => xy = 1,000
Again, since the sum $x invested in 2001 amounted to $250 in 2006, SI for 5 years is $(250 - x).
Thus, 250 - x = x*y*5/100
25,000 - 100x = 5xy
Plugging-in the value of xy = 1,000 in 25,000 - 100x = 5xy, we have x = $200 and y = 5. Thus, x + y = 200 + 5 = 205.
The correct answer:
D
Hope this helps!
-Jay
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