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Register now and save up to $200 Available with Beat the GMAT members only code • 1 Hour Free BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • Free Trial & Practice Exam BEAT THE GMAT EXCLUSIVE Available with Beat the GMAT members only code • 5 Day FREE Trial Study Smarter, Not Harder Available with Beat the GMAT members only code • Free Veritas GMAT Class Experience Lesson 1 Live Free Available with Beat the GMAT members only code • Get 300+ Practice Questions 25 Video lessons and 6 Webinars for FREE Available with Beat the GMAT members only code ## percents tagged by: Brent@GMATPrepNow This topic has 4 expert replies and 2 member replies kamalakarthi Senior | Next Rank: 100 Posts Joined 31 Jan 2011 Posted: 80 messages Followed by: 2 members #### percents Sun Aug 17, 2014 6:12 am If$5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? 1. k=0.8p 2. k=8 This question is from OG. Can you please help me to solve and understand. Thanks in advance. ### GMAT/MBA Expert Brent@GMATPrepNow GMAT Instructor Joined 08 Dec 2008 Posted: 11397 messages Followed by: 1228 members Upvotes: 5254 GMAT Score: 770 Mon Jan 15, 2018 9:25 am kamalakarthi wrote: If$5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? 1. k=0.8p 2. k=8 The great thing about DS questions is that we aren't required to perform calculations if we know that we COULD perform those calculations. Here's what I mean: Target question: What amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? Given: If$5000 invested for one year at p percent simple annual interest yields $500 IMPORTANT: There's ONLY ONE possible value of p that will yield$500 interest after 1 year (if $5000 is invested). So, we COULD perform some calculations to determine that ONE VALUE of p. Statement 1: k = 0.8p Since we COULD determine the value of p, we COULD also determine the value of k Using the fact that k = 0.8p). Once we know the ONE value of k, we COULD determine how much money needs to be invested to get$500 in interest after 1 year.
Since we can answer the target question with certainty, statement 1 is SUFFICIENT

Statement 2: k = 8
Perfect!
Once we know the value of k, we COULD determine how much money needs to be invested to get $500 in interest after 1 year. Since we can answer the target question with certainty, statement 2 is SUFFICIENT Answer = D Cheers, Brent _________________ Brent Hanneson â€“ Founder of GMATPrepNow.com Use our video course along with Check out the online reviews of our course Come see all of our free resources GMAT Prep Now's comprehensive video course can be used in conjunction with Beat The GMATâ€™s FREE 60-Day Study Guide and reach your target score in 2 months! ### GMAT/MBA Expert Rich.C@EMPOWERgmat.com Elite Legendary Member Joined 23 Jun 2013 Posted: 9297 messages Followed by: 477 members Upvotes: 2867 GMAT Score: 800 Mon Feb 19, 2018 8:49 pm Hi All, We're told that$5000 invested for one year at P percent simple annual interest yields $500. We're asked for the AMOUNT that must be invested at K percent simple annual interest for one year to yield the same amount of dollars. To start, the Simple Interest Formula is: Total = (Principal)[1 + (R)(T)] where R is the annual interest rate and T is the number of years. Since we're focused on the INTEREST generated, we'll be dealing with (Principal)(R)(T). Since$5,000 is invested for 1 year at simple annual interest, the interest rate (P) is 10%

1) K = 0.8P

With the information in Fact 1 - and the fact that P = 10, we know that K = 8%. Knowing this, we COULD calculate the amount that would need to be invested at 8%...

(Principal)(.08) = $500 With one variable and one equation, we CAN solve this equation (the good news is that we don't technically have to do that math here - we KNOW that there will be just one answer). Fact 1 is SUFFICIENT 2) K = 8 With the value of K, we can solve the necessary equation (from Fact 1). Fact 2 is SUFFICIENT Final Answer: D GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at Rich.C@empowergmat.com ### Top Member GMATinsight Legendary Member Joined 10 May 2014 Posted: 1044 messages Followed by: 23 members Upvotes: 205 Sun Aug 17, 2014 6:20 am kamalakarthi wrote: If$5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? 1. k=0.8p 2. k=8 This question is from OG. Can you please help me to solve and understand. Thanks in advance. Given :$5000 invested for one year at p percent simple annual interest yields $500 i.e. (p/100)$5000 = $500 i.e. p = 10% Question : Amount to be invested to earn$500 as interest at k% rate
i.e. we need the value of k

Statement 1) k = 0.8p
i.e. k = 0.8 x 10 = 8%
i.e. (k/100)X = $500 i.e. (8/100)X =$500
i.e. X = 500 x 12.5 = $6250 Sufficient Statement 2) k = 8 Same Process Sufficient Answer: Option D _________________ Bhoopendra Singh & Sushma Jha - Founder "GMATinsight" Testimonials e-mail: info@GMATinsight.com I Mobile: +91-9999687183 / +91-9891333772 To register for One-on-One FREE ONLINE DEMO Class Call/e-mail One-On-One Private tutoring fee - US$40 per hour & for FULL COURSE (38 LIVE Sessions)-US$1000 ### GMAT/MBA Expert Brent@GMATPrepNow GMAT Instructor Joined 08 Dec 2008 Posted: 11397 messages Followed by: 1228 members Upvotes: 5254 GMAT Score: 770 Sun Aug 17, 2014 7:28 am kamalakarthi wrote: If$5000 invested for one year at p percent simple annual interest yields $500,what amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? 1) k = 0.8p 2) k = 8 The great thing about DS questions is that we aren't required to perform calculations if we know that we COULD perform those calculations. Here's what I mean: Target question: What amount must be invested at k percent simple annual interest for one year to yield the same amount of dollars ? Given: If$5000 invested for one year at p percent simple annual interest yields $500 IMPORTANT: There's ONLY ONE possible value of p that will yield$500 interest after 1 year (if $5000 is invested). So, we COULD perform some calculations to determine that ONE VALUE of p. Statement 1: k = 0.8p Since we COULD determine the value of p, we COULD also determine the value of k Using the fact that k = 0.8p). Once we know the ONE value of k, we COULD determine how much money needs to be invested to get$500 in interest after 1 year.
Since we can answer the target question with certainty, statement 1 is SUFFICIENT

Statement 2: k = 8
Perfect!

### GMAT/MBA Expert

Brent@GMATPrepNow GMAT Instructor
Joined
08 Dec 2008
Posted:
11397 messages
Followed by:
1228 members
Upvotes:
5254
GMAT Score:
770
Sun Aug 17, 2014 10:26 am
Thanks, Bhoopendra!

I've edited my response.

Cheers,
Brent

_________________
Brent Hanneson â€“ Founder of GMATPrepNow.com
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