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10,000 is deposited in a certain account that pays r percent

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10,000 is deposited in a certain account that pays r percent [#permalink] New post 08 Oct 2007, 17:37
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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 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
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Re: DS: Set 30, Q10 - Interest rate [#permalink] New post 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 .

So D I guess .
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Re: DS: Set 30, Q10 - Interest rate [#permalink] New post 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?

(1) D(t) = 11,000

(2) r =10


D.

We have t, which is 3 years.

So both are suff.
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 [#permalink] New post 08 Oct 2007, 22:07
I think it should be B,

1. INSUFF since r and t are both unknown (11000 not for t=3 it is for t)
2. SUFF t=3 and r=10 so we can find D(3)

Ans: B
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 [#permalink] New post 09 Oct 2007, 11:26
I would also go with B.

1. If the end amount is 11,000, there are many (infinite?) combinations of t and r to get us this sum. Insuff.

2. r = 10, t = 3. so we can solve the problem. Suff.
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 [#permalink] New post 09 Oct 2007, 16:01
t=3 years, is given for both the statement
so i think D is correct
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 [#permalink] New post 09 Oct 2007, 17:29
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?
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Re: DS: Set 30, Q10 - Interest rate [#permalink] New post 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

My answ. is D

I agree that stat. 1 is weird ...
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 [#permalink] New post 10 Oct 2007, 10:15
Should be B.

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

S2: Sufficient
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Re: DS: Set 30, Q10 - Interest rate [#permalink] New post 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.
Re: DS: Set 30, Q10 - Interest rate   [#permalink] 11 Oct 2007, 00:28
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