10,000 is deposited in a certain account that pays r percent : DS Archive
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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]

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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 Director Joined: 08 Jun 2007 Posts: 583 Followers: 2 Kudos [?]: 97 [0], given: 0 Re: DS: Set 30, Q10 - Interest rate [#permalink] ### Show Tags 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]

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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. Senior Manager Joined: 27 Aug 2007 Posts: 253 Followers: 1 Kudos [?]: 12 [0], given: 0 ### Show Tags 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 Manager Joined: 03 Oct 2007 Posts: 61 Followers: 4 Kudos [?]: 18 [0], given: 0 ### Show Tags 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. Manager Joined: 30 May 2007 Posts: 55 Followers: 2 Kudos [?]: 31 [0], given: 0 ### Show Tags 09 Oct 2007, 16:01 t=3 years, is given for both the statement so i think D is correct Director Joined: 11 Jun 2007 Posts: 931 Followers: 1 Kudos [?]: 175 [0], given: 0 ### Show Tags 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? Intern Joined: 02 Aug 2007 Posts: 36 Followers: 0 Kudos [?]: 31 [0], given: 0 Re: DS: Set 30, Q10 - Interest rate [#permalink] ### Show Tags 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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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]

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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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