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Simple Interest pS!

Expert replies
by vishubn » Thu Oct 02, 2008 8:57 pm
$10,000 is deposited in a certain account that pays r percent annual interest compounded annually,
the amount D(t), in dollars, that the deposit will grow to in t years is given by D(t) = 10,000
{1+(r/100)}t. What amount will the deposit grow to in 3 years?
(1) D(t) = 11,000
(2) r =10
A. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
B. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
C. BOTH statements TOGETHER are sufficient, but NEITHER statement ALONE is
sufficient.
D. EACH statement ALONE is sufficient.
E. Statements (1) and (2) TOGETHER are NOT sufficient.
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Source: — Problem Solving |

by stop@800 » Thu Oct 02, 2008 9:00 pm
IMO the question is incorrect

in option A it should be D(1) = 11000

the Ans is D


Even if its not D(1)
the ans will still be D
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by vishubn » Thu Oct 02, 2008 9:32 pm
could u please solve this ??
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by Gmatterz » Thu Oct 02, 2008 11:12 pm
Hi Vishu,
This is a data sufficiency question category,so solving would waste the time

Consider statemnt 1

D(t) = 11,000 ie D(1) = 11,000(as per the data given in the question)

so here t =1 and D(1)=11000 applying the values in the given formula

D(t) = 10,000
{1+(r/100)}t

we will get the value of r,once we find r we can always get the amount after 3 years by reapplying all teh value sback in the formula

so A is sufficient


Consider choice B

(2) r =10

here in also you can directly find the amount value after 3 years

cincre r = 10 ,n=3 so you will get D(3) value

Hence B is also sufficient

Hence the final answer would be D,since each of them is individually sufficient

Thanks
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by kris610 » Fri Oct 03, 2008 7:10 am
Vishu..FYI, you may post the DS problems in the DS section.
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