Maria invested x dollars at 10% per annum compounded annually. After one year, she withdrew 10% of the total amount and

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BTGmoderatorLU: Moderator; Posts: 2650; Joined: Sun Oct 15, 2017 1:50 pmFollowed by: 6 members

by BTGmoderatorLU » Mon Aug 02, 2021 1:43 pm

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Source: E-GMAT

Maria invested x dollars at 10% per annum compounded annually. After one year, she withdrew 10% of the total amount and kept the rest of the amount for another 1 year. The amount that she gets at the end is how much less than the amount she would have got had she not drawn any money at the end of the first year?

A. 0.121x
B. 0.191x
C. 0.231x
D. 0.521x
E. 0.911x

The OA A

Source: Beat The GMAT — Problem Solving | Mon Aug 02, 2021 1:43 pm

swerve: Legendary Member; Posts: 2604; Joined: Sun Oct 29, 2017 2:04 pmFollowed by: 6 members

Re: Maria invested x dollars at 10% per annum compounded annually. After one year, she withdrew 10% of the total amount

by swerve » Tue Aug 03, 2021 5:36 am

BTGmoderatorLU wrote: ↑
Mon Aug 02, 2021 1:43 pm
Source: E-GMAT

Maria invested x dollars at 10% per annum compounded annually. After one year, she withdrew 10% of the total amount and kept the rest of the amount for another 1 year. The amount that she gets at the end is how much less than the amount she would have got had she not drawn any money at the end of the first year?

A. 0.121x
B. 0.191x
C. 0.231x
D. 0.521x
E. 0.911x

The OA A

Let the amount which she invested $= 100$

If amount is not withdrawn: $100x(1.1)^2 = 121$

As she withdrew $10\%$ amount after one year, rest invested for another year $= 100x1.1x0.9x1.1 = 108.9$

Difference in amount$= 12.1$

So, In $\%$term of $x = 0.121x$

Therefore, A

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