Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized for You

we will pick new questions that match your level based on your Timer History

Track Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 350,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

10,000 is deposited in a certain account that pays r percent [#permalink]
08 Oct 2007, 17:37

00:00

A

B

C

D

E

Difficulty:

(N/A)

Question Stats:

100% (01:01) correct
0% (00:00) wrong based on 1 sessions

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

$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?

Re: DS: Set 30, Q10 - Interest rate [#permalink]
08 Oct 2007, 17:57

gluon 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 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

Are we missing something in this question .
With the first statement D(t) = 11,000 looks like for all t , D(t) is 11,000 .
So I guess suff .

Second statement is obviously suff , since we have r = 10 .

Re: DS: Set 30, Q10 - Interest rate [#permalink]
08 Oct 2007, 21:40

gluon 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 is given by D(t) = 10,000 {1+(r/100)}^t. What amount will the deposit grow to in 3 years?

i think it is B. the question asks what it will be in 3 years. we do not know what t is for the first statement. it should state: D(3) = 11,000. what's the OA?

Re: DS: Set 30, Q10 - Interest rate [#permalink]
10 Oct 2007, 00:39

gluon 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 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

Stat. 1 is a constant equation. independently from (t), the result is always 11 000, thus in 3 years it will be 11 000 => sufficient

Stat. 2 having t and r we can calculate D(3) => sufficient

S1: Doesnt state the value of t -
D(t) = 11,000 could be for t=1 or 2 or n...
depending on t, rate of interest varies which changes the compounded amount for 3 years. : Insufficient

Re: DS: Set 30, Q10 - Interest rate [#permalink]
11 Oct 2007, 00:28

gluon 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 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

There is obviously a typo here in (1), but given what we have here.

The answer "should" be D because
1) mathematically states that the deposit will be 11,000 no matter the variables, t or r. It is therefore sufficient. This is true even if we were not given that t=3 (!)
2) gives us the missing variable which is also sufficient.

Guessing what the typo might be, if (1) was supposed to be D(1) = 11000, which makes the most sense, D would also be the answer because we can deduce that r = 10.

gmatclubot

Re: DS: Set 30, Q10 - Interest rate
[#permalink]
11 Oct 2007, 00:28