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.

It appears that you are browsing the GMAT Club forum unregistered!

Signing up is free, quick, and confidential.
Join other 500,000 members and get the full benefits of GMAT Club

Registration gives you:

Tests

Take 11 tests and quizzes from GMAT Club and leading GMAT prep companies such as Manhattan GMAT,
Knewton, and others. All are free for GMAT Club members.

Applicant Stats

View detailed applicant stats such as GPA, GMAT score, work experience, location, application
status, and more

Books/Downloads

Download thousands of study notes,
question collections, GMAT Club’s
Grammar and Math books.
All are free!

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

An investment of d dollars at k percent simple annual [#permalink]

Show Tags

10 Dec 2010, 10:16

3

This post received KUDOS

19

This post was BOOKMARKED

00:00

A

B

C

D

E

Difficulty:

35% (medium)

Question Stats:

76% (02:33) correct
24% (01:48) wrong based on 517 sessions

HideShow timer Statistics

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period. In terms of d, what dollar amount invested at the same rate will yield $2,400 over a 3 year period?

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period. In terms of d, what dollar amount invested at the same rate will yield $2,4,00 over a 3 year period? A. (2d)/3 B. (3d)/4 C. (4d)/3 D. (3d)/2 E. (8d)/3

Simple interest = principal * interest rate * time, where "principal" is the starting amount and "rate" is the interest rate at which the money grows per a given period of time (note: express the rate as a decimal in the formula). Time must be expressed in the same units used for time in the Rate.

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period --> \(d*\frac{k}{100}*2=600\) --> \(k=\frac{30,000}{d}\)

What (x) dollar amount invested at the same rate will yield $2,400 over a 3 year period --> \(x*\frac{k}{100}*3=2,400\) --> \(x*\frac{30,000}{100d}*3=2,400\) --> \(x=\frac{8d}{3}\).

Answer: E.

Or another way: In order interest to be 4 times more in 1.5 times longer time period then investment must be 4d/1.5=8d/3.

Re: an investment of d dollars at k percent [#permalink]

Show Tags

18 Jun 2011, 06:58

1

This post received KUDOS

WishMasterUA wrote:

an investment of d dollars at k percent simple annual interest yield $600 interest over a 2-year period. in term of d, what dollar amount invested at the same rate will yild $2400 interest income over a 3-year period? 1) 2d/3 2) 3d/4 3) 4d/3 4) 3d/2 5) 8d/3

Please explain in detail how to solve this problem.

Re: An investment of d dollars at k percent simple annual [#permalink]

Show Tags

13 Jul 2014, 18:19

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Re: An investment of d dollars at k percent simple annual [#permalink]

Show Tags

09 Feb 2015, 11:27

Hi Bunuel,

If we take simple annual interest of 2% for $10,000 investment, for 2 years it will amount to $404.

How do we know "An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period" = d*k/100 *2 and not similar to $404 calc?

The GMAT will likely ask you to deal with an "interest formula" question once or twice, so you need to note the wording of the prompt and you need to know the formulas for simple interest and compound interest.

Simple Interest = (Principal)(1 + RT)

Compound Interest = (Principal)(1 + R)^T

R = interest rate written as a decimal T = length of time (usually years)

So, if we calculate 2% simple interest on a $10,000 principal over 2 years, we'll have...

Re: An investment of d dollars at k percent simple annual [#permalink]

Show Tags

25 May 2015, 10:54

1

This post received KUDOS

EMPOWERgmatRichC wrote:

Hi nitestr,

The GMAT will likely ask you to deal with an "interest formula" question once or twice, so you need to note the wording of the prompt and you need to know the formulas for simple interest and compound interest.

Simple Interest = (Principal)(1 + RT)

Compound Interest = (Principal)(1 + R)^T

R = interest rate written as a decimal T = length of time (usually years)

So, if we calculate 2% simple interest on a $10,000 principal over 2 years, we'll have...

Re: An investment of d dollars at k percent simple annual [#permalink]

Show Tags

12 Jul 2015, 19:01

3

This post received KUDOS

Simple way to solve it - 600 dollars in 2 years means 300 dollars in 1 year. To get 2400 dollars' it will take 8 years. To get 2400 in 3 years, we need 8/3 times money. Answer is E.

An investment of d dollars at k percent simple annual [#permalink]

Show Tags

15 Dec 2015, 04:49

1

This post received KUDOS

144144 wrote:

An investment of d dollars at k percent simple annual interest yields $600 over a 2 year period. In terms of d, what dollar amount invested at the same rate will yield $2,400 over a 3 year period?

A. (2d)/3 B. (3d)/4 C. (4d)/3 D. (3d)/2 E. (8d)/3

Hi guys, I just did my first CAT and this one was the first question that I answered correctly. We don't need to involve any intetrest formulas at all here: the ratio of interest earnings per year = \(\frac{800}{300} = \frac{8}{3}\) so the ratio of the investment that generates 2400 (let it be X) to D is the same (interest rate remains the same) \(\frac{8}{3}\)=\(\frac{x}{d}\) --> \(x=\frac{8}{3}*d\) Answer E
_________________

When you’re up, your friends know who you are. When you’re down, you know who your friends are.

Share some Kudos, if my posts help you. Thank you !

Re: An investment of d dollars at k percent simple annual [#permalink]

Show Tags

24 Dec 2016, 21:38

Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________

Happy New Year everyone! Before I get started on this post, and well, restarted on this blog in general, I wanted to mention something. For the past several months...

It’s quickly approaching two years since I last wrote anything on this blog. A lot has happened since then. When I last posted, I had just gotten back from...

Happy 2017! Here is another update, 7 months later. With this pace I might add only one more post before the end of the GSB! However, I promised that...

The words of John O’Donohue ring in my head every time I reflect on the transformative, euphoric, life-changing, demanding, emotional, and great year that 2016 was! The fourth to...