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

Redeem

Samantha

This topic has expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 2789
Joined: Tue Jul 26, 2011 12:19 am
Location: Chennai, India
Thanked: 206 times
Followed by:43 members
GMAT Score:640

Samantha

by GmatKiss » Sat May 12, 2012 7:37 am
Samantha deposited a total of $25,000 in a bank CD and a money market account. The bank CD offers a 7.5% annual return, while the money market account offers a 5.25% annual return. If Samantha earns $400 more per year from the CD than the money market account, how much did she invest in the CD?

a. $10,569
b. $11,011
c. $11,569
d. $13,431
e. $13,989
Top
Source: — Problem Solving |
Legendary Member
Posts: 2789
Joined: Tue Jul 26, 2011 12:19 am
Location: Chennai, India
Thanked: 206 times
Followed by:43 members
GMAT Score:640

by GmatKiss » Sat May 12, 2012 7:46 am
Need a short method for this one!
Top
User avatar
Community Manager
Posts: 1060
Joined: Fri May 13, 2011 6:46 am
Location: Utrecht, The Netherlands
Thanked: 318 times
Followed by:52 members

by neelgandham » Sat May 12, 2012 8:12 am
Let the Investment in the bank CD be X, then
the Investment in the money market account = 25000-X

From the question

(7.5/100)*X - (5.25/100)*(25000-X) = 400
(12.75/100)*X - 1312.5 - 400
(12.75/100)*X = 1712.5
X = 13431.xx

IMO D
Anil Gandham
Welcome to BEATtheGMAT | Photography | Getting Started | BTG Community rules | MBA Watch
Check out GMAT Prep Now's online course at https://www.gmatprepnow.com/
Top
Post new topic Post Reply
• Page 1 of 1