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Global Stats
Source: GMAT Prep
An investor opened a money market account with a single deposit of $6000 on December 31, 2001. The interest earned on the account was calculated and reinvested quarterly. The compound interest for the first 3 quarters of 2002 was $125, $130, and $145, respectively. If the investor made no deposits or withdrawals during the year, approximately what annual rate of interest must the account earn for the 4th quarter in order for the total interest earned on the account for the year to be 10 percent of the initial deposit?
A. 3.1%
B. 9.3%
C. 10.0%
D. 10.5%
E. 12.5%
The OA is E
An investor opened a money market account with a single deposit of $6000 on December 31, 2001. The interest earned on the account was calculated and reinvested quarterly. The compound interest for the first 3 quarters of 2002 was $125, $130, and $145, respectively. If the investor made no deposits or withdrawals during the year, approximately what annual rate of interest must the account earn for the 4th quarter in order for the total interest earned on the account for the year to be 10 percent of the initial deposit?
A. 3.1%
B. 9.3%
C. 10.0%
D. 10.5%
E. 12.5%
The OA is E
