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# A loan has a variable interest rate that fluctuates between

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Manager
Joined: 11 Aug 2012
Posts: 135
Schools: HBS '16, Stanford '16
Followers: 0

Kudos [?]: 44 [0], given: 16

A loan has a variable interest rate that fluctuates between [#permalink]  25 Dec 2012, 09:31
00:00

Difficulty:

15% (low)

Question Stats:

85% (02:23) correct 15% (01:09) wrong based on 27 sessions
A loan has a variable interest rate that fluctuates between 5% and 9% of the base payment per month. If base payments remain at $250 each month and an additional monthly surcharge of 1% is added to the combined (base + interest), what would be the greatest possible payment due in any given month? A.$ 262.50
B. $265.13 C.$ 272.50
D. $275.23 E.$ 286.13

Is this a GMAT like question? I don't think so. What do you think? Is it posible to find one like this in the real test?
[Reveal] Spoiler: OA
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Verbal Forum Moderator
Status: Preparing for the another shot...!
Joined: 03 Feb 2011
Posts: 1423
Location: India
Concentration: Finance, Marketing
GPA: 3.75
Followers: 144

Kudos [?]: 770 [0], given: 62

Re: A loan has a variable interest rate that fluctuates between [#permalink]  25 Dec 2012, 09:45
Expert's post
I honestly feel that in this question there is no such thing which may hurt its chances on the real test appearance.
To find the maximum amount, select the maximum rate that is 9%. Therefore the combined amount is 272.5. To this amount add 1% extra of it, as a surcharge. This will be something close to 275.
+1D
_________________
Manager
Joined: 11 Aug 2012
Posts: 135
Schools: HBS '16, Stanford '16
Followers: 0

Kudos [?]: 44 [0], given: 16

Re: A loan has a variable interest rate that fluctuates between [#permalink]  25 Dec 2012, 09:49
You are right. I didn't it read well. I believed it was more difficult than it really is.
Re: A loan has a variable interest rate that fluctuates between   [#permalink] 25 Dec 2012, 09:49
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