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by deloitte247 » Wed Nov 21, 2018 3:08 pm
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
$$answer\ is\ option\ E$$

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by Jay@ManhattanReview » Wed Nov 21, 2018 9:46 pm
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.
What's the source of the question? It is not transcripted well. Also, pl. write the correct answer. Not to forget to mask it.

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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