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# $10,000 is deposited in a certain account that pays r  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Manager Joined: 14 May 2008 Posts: 72 Followers: 1 Kudos [?]: 28 [0], given: 0$10,000 is deposited in a certain account that pays r [#permalink]  14 Jun 2008, 09:10
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$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 in given by D(t)=10,000(1+(r/100))^t. What amount will the deposit grow to in 3 years? (1) D(1) = 11,000 (2) r=10 Below is a flawed version of the above correct question: 10.$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 in 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

Bunuel
[Reveal] Spoiler: OA

Last edited by Bunuel on 23 Feb 2012, 23:17, edited 5 times in total.
Edited the question and added the OA
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Re: Deposit DS [#permalink]  14 Jun 2008, 10:16
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B

statement 1: D(t) = 11000, but t could be any thing, it could be 10 years or 2 years.
insuff

statement 2: suff, because it gives the interest rate and you have the years in the stem, you can find out the total after 3 years.
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Re: Deposit DS [#permalink]  14 Jun 2008, 20:25
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quantum wrote:
10. $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 in 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 Can anybody explain the logic please? Thank you! This is D indeed. Rephrased, knowing that t=3, the equation is: D(t)=10,000(1+(r/100))3 - If you know either D(t) or r, you can solve this equation for all variables. _________________ Check out the new Career Forum http://gmatclub.com/forum/133 Senior Manager Joined: 25 Nov 2011 Posts: 261 Location: India Concentration: Technology, General Management GPA: 3.95 WE: Information Technology (Computer Software) Followers: 3 Kudos [?]: 40 [0], given: 20 Re: Deposit DS [#permalink] 23 Feb 2012, 18:53 gmatnub wrote: B statement 1: D(t) = 11000, but t could be any thing, it could be 10 years or 2 years. insuff statement 2: suff, because it gives the interest rate and you have the years in the stem, you can find out the total after 3 years. D(t) means a function. Now, constant values (i.e., 11000) can't be equated with functions because as far as I can think, no one can come up with an equation with a variable that always produces the same value for all values of the variable. Hence, in this question, we must assume that D(t) gives 11000 for some value of t. With that thinking, D should be the correct answer. _________________ ------------------------- -Aravind Chembeti Manager Status: Employed Joined: 17 Nov 2011 Posts: 101 Location: Pakistan Concentration: International Business, Marketing GMAT 1: 720 Q49 V40 GPA: 3.2 WE: Business Development (Internet and New Media) Followers: 4 Kudos [?]: 76 [0], given: 10 Re: Deposit DS [#permalink] 23 Feb 2012, 20:35 Chembeti wrote: gmatnub wrote: B statement 1: D(t) = 11000, but t could be any thing, it could be 10 years or 2 years. insuff statement 2: suff, because it gives the interest rate and you have the years in the stem, you can find out the total after 3 years. D(t) means a function. Now, constant values (i.e., 11000) can't be equated with functions because as far as I can think, no one can come up with an equation with a variable that always produces the same value for all values of the variable. Hence, in this question, we must assume that D(t) gives 11000 for some value of t. With that thinking, D should be the correct answer. Guys t is already give, No? 3 years. So t should be 3, No? Hence D _________________ "Nowadays, people know the price of everything, and the value of nothing." Oscar Wilde Math Expert Joined: 02 Sep 2009 Posts: 23055 Followers: 3535 Kudos [?]: 27190 [0], given: 2725 Re:$10,000 is deposited in a certain account that pays r [#permalink]  23 Feb 2012, 22:59
Expert's post
quantum wrote:
10. $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 in 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 Can anybody explain the logic please? Thank you! Two things: Formula should be D(t)=10,000(1+\frac{r}{100})^t and statement (1) should read D(1)=11,000 (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:$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 in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years?

Question: D(3)=10,000(1+\frac{r}{100})^3=?. Basically the only thing we need is the value of r.

(1) D(1) = 11,000 --> D(1)=10,000(1+\frac{r}{100})^1=11,000 --> we can solve for r. Sufficient.

(2) r=10 --> directly gives the value of r. Sufficient.

Hope it's clear.
_________________
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Re: $10,000 is deposited in a certain account that pays r [#permalink] 23 Feb 2012, 23:10 quantum wrote:$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 in given by D(t)=10,000(1+(r/100))^t. What amount will the deposit grow to in 3 years?

(1) D(1) = 11,000
(2) r=10

Below is a flawed version of the above correct question:
10. $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 in 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 Bunuel Hi The answer is indeeded +1 D Statement Break Down : You need to know R. t is already know at 3 years Statement 1 : D(1) : 11,000 Thus you can easily find out 'R' by equating D(1) & the eqn of D(t) Thus sufficient Statement 2 : R know hence sufficient Thus we can find R which is the _________________ Giving +1 kudos is a better way of saying 'Thank You'. Senior Manager Joined: 25 Nov 2011 Posts: 261 Location: India Concentration: Technology, General Management GPA: 3.95 WE: Information Technology (Computer Software) Followers: 3 Kudos [?]: 40 [0], given: 20 Re:$10,000 is deposited in a certain account that pays r [#permalink]  23 Feb 2012, 23:30
Bunuel wrote:
quantum wrote:
10. $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 in 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 Can anybody explain the logic please? Thank you! Two things: Formula should be D(t)=10,000(1+\frac{r}{100})^t and statement (1) should read D(1)=11,000 (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:$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 in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years?

Question: D(3)=10,000(1+\frac{r}{100})^3=?. Basically the only thing we need is the value of r.

(1) D(1) = 11,000 --> D(1)=10,000(1+\frac{r}{100})^1=11,000 --> we can solve for r. Sufficient.

(2) r=10 --> directly gives the value of r. Sufficient.

Hope it's clear.

Agreed. But taking it on the face value, Statement 1 can give an impression that, for any value of t, D(t) gives 11000 ,which I think is not correct. Personally I don;t accept this statement, because in DS category, I do following activities:
1. Is the statement is supported for all situations by the premises/facts given in the question stem.
2. Once the answer for the above is Yes, then I will think, does the statement support all situations of the question.

In this exercise, I get a 'No' to the first part from the question. Hence, the answer should be B.

But, as the statement 1, does not hold good on its face value, I just tried mapping it to the question stem for specific scenario and then got the answer D.

Isn't this correct approach?
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-Aravind Chembeti

Math Expert
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Posts: 23055
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Kudos [?]: 27190 [0], given: 2725

Re: $10,000 is deposited in a certain account that pays r [#permalink] 24 Feb 2012, 00:36 Expert's post Chembeti wrote: Bunuel wrote: quantum wrote: 10.$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 in 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

Can anybody explain the logic please?
Thank you!

Two things:
Formula should be D(t)=10,000(1+\frac{r}{100})^t and statement (1) should read D(1)=11,000 (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:

$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 in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years? Question: D(3)=10,000(1+\frac{r}{100})^3=?. Basically the only thing we need is the value of r. (1) D(1) = 11,000 --> D(1)=10,000(1+\frac{r}{100})^1=11,000 --> we can solve for r. Sufficient. (2) r=10 --> directly gives the value of r. Sufficient. Answer: D. Hope it's clear. Agreed. But taking it on the face value, Statement 1 can give an impression that, for any value of t, D(t) gives 11000 ,which I think is not correct. Personally I don;t accept this statement, because in DS category, I do following activities: 1. Is the statement is supported for all situations by the premises/facts given in the question stem. 2. Once the answer for the above is Yes, then I will think, does the statement support all situations of the question. In this exercise, I get a 'No' to the first part from the question. Hence, the answer should be B. But, as the statement 1, does not hold good on its face value, I just tried mapping it to the question stem for specific scenario and then got the answer D. Isn't this correct approach? If we take (1) as it was written: D(t) = 11,000 then it would mean that D(t) has the same value no matter the time period and annual interest, which makes no sense at all. Though technically it still would be sufficient as it would mean that for t=3 the answer is also 11,000. Having said that I recommend not to spend time on flawed version of a question as you won't see such one on the real test. _________________ Senior Manager Joined: 25 Nov 2011 Posts: 261 Location: India Concentration: Technology, General Management GPA: 3.95 WE: Information Technology (Computer Software) Followers: 3 Kudos [?]: 40 [0], given: 20 Re:$10,000 is deposited in a certain account that pays r [#permalink]  24 Feb 2012, 01:37
Bunuel wrote:

Having said that I recommend not to spend time on flawed version of a question as you won't see such one on the real test.

Sure. I was just thinking whether such questions would appear in a real test, now my doubt is cleared
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-Aravind Chembeti

Math Expert
Joined: 02 Sep 2009
Posts: 23055
Followers: 3535

Kudos [?]: 27190 [0], given: 2725

Re: $10,000 is deposited in a certain account that pays r [#permalink] 10 Jun 2013, 02:52 Expert's post Bumping for review and further discussion*. Get a kudos point for an alternative solution! *New project from GMAT Club!!! Check HERE Theory on Percent and Interest Problems: math-number-theory-percents-91708.html All DS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=33 All PS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=54 _________________ Re:$10,000 is deposited in a certain account that pays r   [#permalink] 10 Jun 2013, 02:52
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# \$10,000 is deposited in a certain account that pays r

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