We are to check if $$n>4$$
Investment = 5000 dollars
when n=1, interest per annum = 5% of 5000
$$=\frac{5}{100}\cdot5000$$
$$=250$$
Statement 1
At the end of the year, Moe's investment + interest is greater 5500 dollars.
$$investment\ +\ interest>5,500\ dollars$$
$$Interest>\left(5,500-5000\right)dollars\ $$
$$Interest\ >500\ dollars$$
$$when\ interest\ >500dollars,\ n>\frac{500dollars}{250dollars}=2$$
n>2yrs, Thus n can be either 3,4,5,6.............if n=3; n<4 but if n=5; n>4
Information given is not enough to arrive at a definite answer hence;
statement 1 is not SUFFICIENT.
Statement 2
At the end of n-years, Moe's investment + interest is lesser than 6,500 dollars
$$investment\ +\ interest\ <6,500dollars\ $$
$$interest<\left(6500-5000\right)dollars$$
$$interest<1500\ dollars$$
$$n<\frac{1500dollars}{250dollars}<6$$
$$n<6yrs,\ thus\ n\ can\ be\ either\ 5,4,3,2,1$$ $$if\ n=5;\ n>4\ but\ if\ n=3;\ n<4$$
Information given is not enough to arrive at a definite answer, hence statement 2 is not SUFFICIENT .
Both statement 1 and statement 2 combined together
Statement 1 ; n>2
Statement 2 ; n<6
thus $$2<n<6$$ $$n\ c\ \ can\ either\ be\ 3,\ 4\ \ or\ 5$$
If n=3 ; n<4 but if n=5 ; n>4
The two statements combined together were not enough to decide if n>4 or n<4
$$answer\ is\ option\ E$$
interest
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What's the source of the question? It is not transcripted well. Also, pl. write the correct answer. Not to forget to mask it.Anonymous wrote:Moe invested a total of $5000 at 5% simple annual interest for n years. Is n > 4?
(1) At the end of n years, Moe's investment plus interest was more than $5500.
(2) At the end of n years, Moe's investment plus interest was less than $6500.
We have the unique answer is, we get, one of the following as conclusion.
1. n > 4; the answer is yes.
2. n ≤ 4; the answer is no.
Say n = 4.
In n = 4 years, $5000 at 5% simple annual interest would be 5000 + (5000*5*4)/100 = $6000.
Let's take each statement one by one.
(1) At the end of n years, Moe's investment plus interest was more than $5500.
Since $5500 < $6000, the value of n can be less than 4; however, if Moe's investment plus interest was more than $6000. n can even be greater than 4. Insufficient.
(2) At the end of n years, Moe's investment plus interest was less than $6500.
Since $6500 > $6000, the value of n can be greater than 4; however, if Moe's investment plus interest was less than $6000. n can even be less than 4. Insufficient.
(1) and (2) together
6500 > Moe's investment plus interest > 5500
=> 6500 > Moe's investment plus interest > 6000; the answer is Yes.
=> 6000 ≥ Moe's investment plus interest > 5500; the answer is No.
No unique answer. Insufficient.
The correct answer: E
Hope this helps!
-Jay
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