Find all School-related info fast with the new School-Specific MBA Forum

It is currently 01 Aug 2015, 04:16
GMAT Club Tests

Close

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.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

If $1000 is deposited in a bank account and remains in the

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Intern
Intern
avatar
Joined: 20 Apr 2006
Posts: 39
Followers: 0

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

If $1000 is deposited in a bank account and remains in the [#permalink] New post 01 Aug 2006, 08:49
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

If $1000 is deposited in a bank account and remains in the account along with any accumulated interest, the dollar amount of interest, I, earned by deposit in first n years is given by formula I = 1000[(1+r/100)^n - 1], where r percent is annual interest rate paid by bank. Is the annual interest rate paid by bank greater than 8 percent ?

I. The deposit earns a total of $210 in interest in 1st 2 years.
II. (1+r/100)^2 > 1.15

I don't understand why the question can't be solved by II alone.

Thanks for your help.
VP
VP
User avatar
Joined: 02 Jun 2006
Posts: 1266
Followers: 2

Kudos [?]: 51 [0], given: 0

 [#permalink] New post 01 Aug 2006, 08:55
From the given equation

r = 100 x nth-root((I+1)/1000) - 100

S1: Sufficient to calculate, as I, n are given

S2:
Re-writing :

r > (sqrt(1.15) -1) x 100

r can be any value satisfying this equation. Multiple solutions. Not sufficient.

Answer: A
CEO
CEO
User avatar
Joined: 20 Nov 2005
Posts: 2910
Schools: Completed at SAID BUSINESS SCHOOL, OXFORD - Class of 2008
Followers: 19

Kudos [?]: 140 [0], given: 0

 [#permalink] New post 01 Aug 2006, 09:01
A

St1: We get
210 = 1000[(1+r/100)^2 -1]
21/100 + 1= (1+r/100)^2
11/10 = 1+r/100
r = 10: SUFF

St2: (1+r/100)^2 > 1.15
i.e (1+r/100) > 1.07
i.e r > 7: INSUFF
_________________

SAID BUSINESS SCHOOL, OXFORD - MBA CLASS OF 2008

SVP
SVP
avatar
Joined: 30 Mar 2006
Posts: 1737
Followers: 1

Kudos [?]: 46 [0], given: 0

 [#permalink] New post 02 Aug 2006, 03:12
A

1)
210 = 1000[(1+r/100)^n -1]

1210 = 1000(1+r/100)^2
1.21 = (1+r/100)^2
1.1 = 1 + r/100
r = 10
Suff

2)
(1+r/100)^2 > 1.15
Lets say r = 7
(1+r/100)^2 = 1.151
Hence r > 7 Not suff
  [#permalink] 02 Aug 2006, 03:12
Display posts from previous: Sort by

If $1000 is deposited in a bank account and remains in the

  Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Privacy Policy| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group and phpBB SEO

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.