Last year a certain bond with a face value of $\$5,000$ yielded $8$ percent of its face value in interest. If that

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by M7MBA » Thu Oct 29, 2020 12:22 pm

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Last year a certain bond with a face value of $\$5,000$ yielded $8$ percent of its face value in interest. If that interest was approximately $6.5$ percent of the bond's selling price, approximately what was the bond's selling price?

A. $\$4,063$
B. $\$5,325$
C. $\$5,351$
D. $\$6,000$
E. $\$6,154$

Answer: E

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Source: Beat The GMAT — Problem Solving | Thu Oct 29, 2020 12:22 pm

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Re: Last year a certain bond with a face value of $\$5,000$ yielded $8$ percent of its face value in interest. If th

by Scott@TargetTestPrep » Thu Nov 05, 2020 3:44 pm

M7MBA wrote: ↑
Thu Oct 29, 2020 12:22 pm
Last year a certain bond with a face value of $\$5,000$ yielded $8$ percent of its face value in interest. If that interest was approximately $6.5$ percent of the bond's selling price, approximately what was the bond's selling price?

A. $\$4,063$
B. $\$5,325$
C. $\$5,351$
D. $\$6,000$
E. $\$6,154$

Answer: E

Solution:

Eight percent of $5,000 is 5000 x 0.08 = $400, and $400 is 6.5 percent of 400/0.065 = $6,513.84, or approximately $6,514.

Answer: E

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