An investment of d dollars at k percent simple annual

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

10 Dec 2010, 11:16

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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 $2,4000 over a 3 year period?

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

[Reveal] Spoiler: OA

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Re: Another simple one i guess... [#permalink]

10 Dec 2010, 11:34

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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.

Answer: E.
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Re: Another simple one i guess... [#permalink]

10 Dec 2010, 11:38

Thanks. Didnt know the Simple interest thing.

+1 from me for all ur help.

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

18 Jun 2011, 07:58

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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.

simple interest = PNR/100
dk2=600
d = 300/k
thus
(x*300/k)*k*3= 2400
X= 2400/900= 24/9 = 8/3

hence E

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

06 Feb 2012, 02:01

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Since you want to earn 4 times more interest in 1.5 times the current time period, the answer will be 4d/1.5 or 8d/3

Re: An investment of d dollars at k percent [#permalink] 06 Feb 2012, 02:01

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