An investment of y dollars at p percent simple interest yields $600 interest over a 3-year period. In terms of y, what dollar amount invested at the same rate will yield the same amount of interest over a 2-year period?
Source: Gmat Hacks 1800
Let's start by assigning suitable values to some variables so that we can easily calculate the answer.
$600 simple interest earned in 3 yrs means $200 earned every year. So if dollar amount y = 1000, rate of interest p = 20%
We need $600 in 2 yrs i.e. $300 every year at 20% rate.
300 = 20% of Amount invested
Amount invested = $1500 i.e. (3/2)y
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