A certain sum of money amounts to $2613 in 6 yrs at 5% per : PS Archive Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack  It is currently 21 Jan 2017, 23:07 ### GMAT Club Daily Prep #### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email. Customized for You we will pick new questions that match your level based on your Timer History Track Your Progress every week, we’ll send you an estimated GMAT score based on your performance Practice Pays we will pick new questions that match your level based on your Timer History #### Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here. ### Request Expert Reply # Events & Promotions ###### Events & Promotions in June Open Detailed Calendar # A certain sum of money amounts to$ 2613 in 6 yrs at 5% per

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A certain sum of money amounts to $2613 in 6 yrs at 5% per [#permalink] ### Show Tags 19 Feb 2004, 09:04 00:00 Difficulty: (N/A) Question Stats: 0% (00:00) correct 0% (00:00) wrong based on 0 sessions ### HideShow timer Statistics This topic is locked. If you want to discuss this question please re-post it in the respective forum. A certain sum of money amounts to$ 2613 in 6 yrs at 5% per annum. In how many yrs will it amount to $3015 at the same rate? SVP Joined: 30 Oct 2003 Posts: 1793 Location: NewJersey USA Followers: 5 Kudos [?]: 98 [0], given: 0 ### Show Tags 19 Feb 2004, 09:38 10 years from the begining of the investment ( assuming simple interest not added vto the sum every year ) or 4 years from the time it became 2613 GMAT Club Legend Joined: 15 Dec 2003 Posts: 4302 Followers: 40 Kudos [?]: 429 [0], given: 0 ### Show Tags 19 Feb 2004, 11:33 Rakesh, we need to know if interest is compounded _________________ Best Regards, Paul GMAT Club Legend Joined: 15 Dec 2003 Posts: 4302 Followers: 40 Kudos [?]: 429 [0], given: 0 ### Show Tags 19 Feb 2004, 12:03 The best way to go about this problem is to work in approximation. A quick way to calculate a 5% interest rate is just calculate it as being 10% and divide the result by 2. After 1 year, then .05 * 2613 = approx. 130$
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$After 2nd year, total amount in piggy bank is 2730 + 140 = 2870 After 3rd year, interest earned is .05 * 2870 = approx. 145 After 3rd year, total amount in piggy bank is 2870 + 145 = 3015 Eureka, answer is 3 years. I think we have to assume compounding in this problem. You then have to add 3 + 6 = 9years to become 3015$
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Best Regards,

Paul

Last edited by Paul on 19 Feb 2004, 14:53, edited 1 time in total.
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19 Feb 2004, 14:22
2613 = (P+I) Principal and Interest in 6 years at 5% simple interest.
Use I = (P.n.R)/100 n -time in years and R-- rate to get P = 2010

New interest for n years = 3015 - 2010 = 1005
n = (I .100)/(P.R)
= (1005.100)/(2010.5)
= 10 years
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19 Feb 2004, 16:42
Answer is 10 yrs. Guys in every question, u need to assume it as SI unless it specifically says that the interest is compounded.
19 Feb 2004, 16:42
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