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# A certain sum of money amounts to $2613 in 6 yrs at 5% per  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Manager Joined: 26 Dec 2003 Posts: 227 Location: India Followers: 1 Kudos [?]: 2 [0], given: 0 A certain sum of money amounts to$ 2613 in 6 yrs at 5% per [#permalink]  19 Feb 2004, 09:04
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A certain sum of money amounts to $2613 in 6 yrs at 5% per annum. In how many yrs will it amount to$ 3015 at the same rate?
SVP
Joined: 30 Oct 2003
Posts: 1797
Location: NewJersey USA
Followers: 5

Kudos [?]: 41 [0], given: 0

10 years from the begining of the investment ( assuming simple interest not added vto the sum every year )
or 4 years from the time it became 2613
GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 216 [0], given: 0

Rakesh, we need to know if interest is compounded
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Best Regards,

Paul

GMAT Club Legend
Joined: 15 Dec 2003
Posts: 4313
Followers: 26

Kudos [?]: 216 [0], given: 0

The best way to go about this problem is to work in approximation. A quick way to calculate a 5% interest rate is just calculate it as being 10% and divide the result by 2.
After 1 year, then .05 * 2613 = approx. 130$After 1 year, total amount in piggy bank is 2600 + 130 = 2730 After 2nd year, if interest is compounded, interest earned is .05 * 2730 = approx. 140$
After 2nd year, total amount in piggy bank is 2730 + 140 = 2870

After 3rd year, interest earned is .05 * 2870 = approx. 145
After 3rd year, total amount in piggy bank is 2870 + 145 = 3015