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At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest,

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At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest,

by BTGmoderatorDC » Sat Jul 04, 2020 5:16 pm

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At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest, and each held the certificate of deposit through the end of 1990. If Jon invested x dollars and Krista invested $10,000, and if Jon earned interest in 1990 totaling $1200, what was the amount of interest that Krista earned on her $10,000 investment?

(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.
(2) In 1990, Jon invested $20,000 in the certificate of deposit.



OA D

Source: Princeton Review
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Source: — Data Sufficiency |

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Re: At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest

by Jay@ManhattanReview » Mon Jul 06, 2020 12:22 am

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BTGmoderatorDC wrote: ↑
Sat Jul 04, 2020 5:16 pm
 At the beginning of 1990, Jon and Krista each purchased a certificate of deposit that paid the same rate of interest, and each held the certificate of deposit through the end of 1990. If Jon invested x dollars and Krista invested $10,000, and if Jon earned interest in 1990 totaling $1200, what was the amount of interest that Krista earned on her $10,000 investment?

(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.
(2) In 1990, Jon invested $20,000 in the certificate of deposit.

OA D

Source: Princeton Review
Say the rate of interest in r%.

So, we have to get the value of r% of 10,000 = $100r.

Let's take each statement one by one.

(1) The rate of interest on the certificate of deposit that Jon and Krista each purchased was 6 percent.

=> r = 6

The value of 100r = 100*6 = $600. Sufficient.

(2) In 1990, Jon invested $20,000 in the certificate of deposit.

Rate of interest = [1,200/20,000]*100% = 6%

This is the same information as we have in statement 1. Sufficient.

Correct answer: D

Hope this helps!

-Jay
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