BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem

Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

★★★★★5.0559 reviews
Vote for Target Test Prep, Newsweek Readers’ Choice Awards 2026
NEWSWEEK READERS’ CHOICE 2026

BIG NEWS! Target Test Prep has been nominated, and they’d love your vote!

TTP has worked incredibly hard to build the best test prep experience possible, and winning Newsweek’s 2026 Readers’ Choice Award for Best Test Prep would mean a lot to them. If TTP has helped you, they’d be incredibly grateful for your vote. You can vote once each day through September 9.

Vote for TTP
GMATLiveTeach 7 seats left
Chris Peckover
NEXT LIVE COHORT

Oct 13 to Jan 7, 2027

with Chris Peckover

Schedule
Tue, Thu · 8:00 to 10:00 PM ET
Included
40 live hours + 6 months of GMAT OnDemand
  • Live instruction and real-time questions
  • Class recordings and assigned practice
View class & enroll
Limited cohort · enrollment openTarget Test Prep
EALiveTeach 5 seats left
Logan Thompson
EXECUTIVE ASSESSMENT

Sep 6 to Dec 6, 2026

with Logan Thompson

Schedule
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll
Limited cohort · enrollment openTarget Test Prep
GMATOnDemand Start anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions

Compare the format, schedule, and included access before enrolling. Prices and seat counts shown reflect the supplied offer details.

Princeton..MegaSaver & InvestPro..pg no.178

Expert replies
by prachich1987 » Wed Dec 29, 2010 9:38 pm
A certain bank offers two different savings accounts : MegaSaver & InvestPro.Does MegaSaver offer a greater return over a 5-year period than InvestPro?

1) MegaSaver has an interest rate of 3% paid quarterly.InvestPro has an interest rate of 4% paid semi-anually.
2) The MegaSaver account will first pay a return at least 100% greater than the InvestPro account after 17.5 years.

Source :Princeton
OA : later
Join the discussion
Source: — Data Sufficiency |

by Geva@EconomistGMAT » Wed Dec 29, 2010 11:16 pm
I don't think the question is phrased properly, or clearly, so I'm not 100% sure of this. I'm making the assumption that we're asked to compare returns based on the same initial Principal. i.e.. if we invest the same amount (e.g. $100) in each of the programs, which account will have a greater balance after 5 years? If we can also play around with the initial Principal, then the answer is E: you can always claim that you invest $1 in one program and $10000 in the other, or vice versa, and receive a greater return on the $10000 one, regardless of interest rates.

Under this assumption, it comes down solely to interest rate: whichever of the programs offers a greater annual interest rate will have a greater return. If one program gives 10% and the other only 8%, then the first program will offer better returns consistently after 1 year, 5 years or 10 years. So the issue of the question is "which of these programs have a greater annual interest rate?"

Stat. (1): sufficient, and there is absolutely no need to calculate the returns. This statement basically gives you the interest rates of each program: using the data, you should be able to plug in $100 in each and find the return after 5 years, at which point you will have enough data to answer the question one way or the other.
Caveat: the only ambiguity here is if it is possible for one account to be simple interest and the other compound, or vice versa.

Stat (2): If the mega saver pay a greater return at any point (be it 17.5 or any other years after), then it must have a greater interest rate - which means that it must also pay a greater interest rate after 5 years. The answer is yes, and sufficient.

So the answer is D, unless whoever wrote the question left it ambiguous intentionally in order to allow you to play with two parameters: initial Principal, and simple Vs. Compound interest. Not a very good question, IMHO.
Geva
Senior Instructor
Master GMAT
1-888-780-GMAT
https://www.mastergmat.com
Join the discussion