Interest - GMATPrep Test 1 - The Beat The GMAT Forum - Expert GMAT Help & MBA Admissions Advice

Interest - GMATPrep Test 1

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kwah: Senior | Next Rank: 100 Posts; Posts: 70; Joined: Wed Jan 04, 2012 5:15 pm

by kwah » Wed Feb 22, 2012 5:44 pm

I have attached a question from GMATPrep Test.

Answer: E

I am stuck on this one, can someone please explain steps to achieve this result?

Thank you.

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GMATPrep Test 1_PS Interest_#13.docx: (56.14 KiB) Downloaded 80 times

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Source: Beat The GMAT — Problem Solving | Wed Feb 22, 2012 5:44 pm

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Anurag@Gurome: GMAT Instructor; Posts: 3835; Joined: Fri Apr 02, 2010 10:00 pmFollowed by: 523 members; Location: Milpitas, CA; Thanked: 1854 times; GMAT Score:770

by Anurag@Gurome » Wed Feb 22, 2012 6:49 pm

kwah wrote:I have attached a question from GMATPrep Test.

Answer: E

I am stuck on this one, can someone please explain steps to achieve this result?

Thank you.

Simple interest = Principal * Interest rate * Time

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period implies d * (k/100) * 2 = 600
So, k = 30000/d

Let us assume that $X invested at the same rate will yield $2,4,00 over a 3 year period.
Then X * (k/100) * 3 = 2400
X * 300/d * 3 = 2400 (By putting k = 30000/d)
So, X = [spoiler]8d/3[/spoiler]

The correct answer is E.

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GMATGuruNY: GMAT Instructor; Posts: 15539; Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members; Location: New York, NY; Thanked: 13060 times; GMAT Score:790

by GMATGuruNY » Thu Feb 23, 2012 5:16 am

I posted a solution here:

https://www.beatthegmat.com/word-problem-t86535.html

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kwah: Senior | Next Rank: 100 Posts; Posts: 70; Joined: Wed Jan 04, 2012 5:15 pm

by kwah » Thu Feb 23, 2012 9:40 pm

Very helpful, thank you.

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