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GMAT PREP (Interest)

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by relaxin99 » Mon Feb 16, 2009 4:40 pm
Last year a certain bond with a face value of 5000 yielded 8 percent of its face value in interest. If that interest was apporximately 6.5% of the bond's selling price, approximately what was the bond's selling price?

A) 4063
B) 5325
C) 5351
D) 6000
E) 6154


Can someone please explain their answer as well, the correct answer is down below
























The answer is E 6154
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Source: — Problem Solving |

by billzhao » Mon Feb 16, 2009 4:51 pm
Assume interest is I, bond's selling price is P

From the question: I=5000*8%=400 P*6.5%=I=400
So P=400/(6.5%)=6154

Answer is (E)
Yiliang
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by ven4gmat » Tue Feb 17, 2009 12:51 pm
Let x be the bond's selling price

Given 6.5%(x) = 8%(5000)

6.5%(x) = 400

So x = 40000/6.5 > 6000

Hence choice E
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Re: GMAT PREP (Interest)

by Ossa » Tue Feb 17, 2009 6:09 pm
Sale price= (8/6.5)*5000

Since 8/6.5 is larger than 1, so we know that the sale price is greater than 5000. Since you do not have a calculator, you need to estimate the result.
By looking at 8 divided by 6.5, we can estimate that the correct answer is either D or E. For the sale price to be equal to 6000, 8 divided 6.5 should be equal to 1.2, which is not the case and so the answer is E.


relaxin99 wrote:Last year a certain bond with a face value of 5000 yielded 8 percent of its face value in interest. If that interest was apporximately 6.5% of the bond's selling price, approximately what was the bond's selling price?

A) 4063
B) 5325
C) 5351
D) 6000
E) 6154


Can someone please explain their answer as well, the correct answer is down below
























The answer is E 6154
Ossa Elhadary, PhD, CISA, PMP
Math Specialist
Test Prep New York
maximize your score, minimize your stress

www.testprepny.com
[email protected]
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