BOND

Expert replies

bburton11: Junior | Next Rank: 30 Posts; Posts: 29; Joined: Tue Dec 23, 2008 11:42 am; Thanked: 1 times

by bburton11 » Tue Jun 23, 2009 5:20 am

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 bonds selling price?

$4,063
$5,325
$5.351
$6,000
$6,154

Like this post

Source: Beat The GMAT — Problem Solving | Tue Jun 23, 2009 5:20 am

ssmiles08: Master | Next Rank: 500 Posts; Posts: 472; Joined: Sun Mar 29, 2009 6:54 pm; Thanked: 56 times

by ssmiles08 » Tue Jun 23, 2009 5:32 am

I think the key here is to read the question and translate it carefully.

1st sentence, they give you the interest. 5000*8/100 = 400

2nd sentence, they use that same interest in deriving something else.

400 = .065(selling price)

selling price ~ $6,150 which is closest to (E)

Like this post

pops: Master | Next Rank: 500 Posts; Posts: 148; Joined: Tue Jun 09, 2009 11:06 pm; Thanked: 7 times

by pops » Tue Jun 23, 2009 8:41 pm

let SP be x
so 6.5% of x = 8% of 5000
x = 8*5000/6.5 ~ 6154

Like this post

Post new topic Post Reply

• Page 1 of 1

GMAT Course Reviews

560 reviews

1168 reviews

431 reviews

359 reviews

147 reviews

5/5

5 Star (560 Reviews)

"Target Test Prep is the closest to the official version of the GMAT exam, about 99% accuracy in terms of the quality and quantity of information. The course has excellently created singular sets of focused lessons and tests for every possible topic that one could come across in the official GMAT exam."

"The TTP course maximizes the efficiency of the time you spend studying. It will take time and effort but I could almost guarantee that if you complete the course exactly as it is laid out you will get an amazing score. They also have a very responsive team willing to help with any questions you might have."

"TTP has two things that I think no other test prep company offers: A teaching approach that reinforces understanding and an attitude that will give you the mental preparedness needed to succeed on the test. TTP gives you a deep understanding of the concept you need to know while teaching you how to think."

Write a Review