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20000 is invested with quarterly compounding ...interest at

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CEO
Joined: 15 Aug 2003
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20000 is invested with quarterly compounding ...interest at [#permalink]  11 Sep 2003, 23:46
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$20000 is invested with quarterly compounding ...interest at the end of first quarter is: (1) first quarter interests is 1% more than second quarter (2) first quarter interests is$2 more than second quarter end

thanks
praetorian
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Joined: 03 Feb 2003
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so, what is the question? I think to find the interest rate.

if the second quarter interest is less than that of the first one, then the question is a problem of depreciation, and not that of compound interest.

(1) 20000R=1.01(20000(1+R)^2-20000), a quadratic equation in which R=0 or R is some negative number. Should we consider R=0? Strictly speaking yes. So, not enough

(2) again, a quadratic equation in which R=0 or R is some negative number, not enough

combine: not enough, E
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Joined: 07 Jul 2003
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Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE
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Re: DS : Quarterly compounding [#permalink]  14 Sep 2003, 02:58
praetorian123 wrote:
$20000 is invested with quarterly compounding ...interest at the end of first quarter is: (1) first quarter interests is 1% more than second quarter (2) first quarter interests is$2 more than second quarter end

thanks
praetorian

Are you sure this question is stated correctly? If you have compounded interest, the interest will always be higher in later periods, not less.
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Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

Re: DS : Quarterly compounding   [#permalink] 14 Sep 2003, 02:58
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