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prep question

by jamesk486 » Sat Jul 12, 2008 3:01 pm
John opened a new account of fixed annual interested and deposited 20,000 in the account. Interest rate was compounded quarterly. If no transactions were made, how much interest was made at the end of the 1st quarter?
1. The interest earned at the end of the 2nd quarter was 1% more than that at the 2nd quarter.
2. The interest earned at the 2nd quarter was $2 more than at the first quarter.

OA is D
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by rs2010 » Sat Jul 12, 2008 8:08 pm
First this question does not belong here.It is DS

And in my view both the statements are sufficient if you correct the A statement. In the end it says something at the end of 2nd quarter.

you can use formula

total sum = P*(1+r/100)^n

P is 20k

Thru A you will get r after comparing 2 equations for amount.
Thru B you will again get 2 equations.
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