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If $5,000 invested for one year at p percent simple annual

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If $5,000 invested for one year at p percent simple annual [#permalink] New post 09 Jul 2012, 03:46
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If $5,000 invested for one year at p percent simple annual interest yields $500, what amount must be invested at k percent simple annual interest for one year to yield the same number of dollars?

(1) k = 0.8p
(2) k = 8

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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 09 Jul 2012, 03:46
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SOLUTION

If $5,000 invested for one year at p percent simple annual interest yields $500, what amount must be invested at k percent simple annual interest for one year to yield the same number of dollars?

Simple interest = Principal * Interest rate * Time, so we have that $500=$5,000*\frac{p}{100}*1, which gives p=10%

(1) k = 0.8p --> k=8% --> $500=Principal *\frac{8}{100}*1. Sufficient to calculate Principal.
(2) k = 8. $500=Principal *\frac{8}{100}*1. Sufficient to calculate Principal.

Answer: D.

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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 09 Jul 2012, 05:06
Bunuel wrote:
If $5,000 invested for one year at p percent simple annual interest yields $500, what amount must be invested at k percent simple annual interest for one year to yield the same number of dollars?

(1) k = 0.8p
(2) k = 8

Hi,

Difficulty level: 600

SI (Simple Interest) = \frac{PRT}{100},
where, P = Principal,
R = Rate in percentage,
T = Time

Thus, 500 = \frac {5000*p*1}{100}
or p = 10%

New Principal invested depends on value of k

Using (1),
k=0.8*p=8%
P=\frac {100SI}{RT}
=\frac {100*500}{8*1}
. Sufficient.

Using (2),
k=8%
P=\frac {100SI}{RT}
=\frac {100*500}{8*1}
. Sufficient.

Answer (D),

Regards,

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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 11 Jul 2012, 10:39
Is this really a question of DS... I mean in any case we will be having a value of the Principal amount such that it yields the same Rate of Interest......Please correct me if I am wrong.
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 11 Jul 2012, 10:46
without any doubt..its D.....

we can find p.. we multiply p by .8 and we can 8.. the same information is given in b..

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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 11 Jul 2012, 11:02
sanjoo wrote:
without any doubt..its D.....

we can find p.. we multiply p by .8 and we can 8.. the same information is given in b..



But my point is that either ways we will be getting a value...using any of the two statements.... just doesn't seem to fit in like a classic DS question. Whatever the figures given this question will always be solvable..... with either of the two statements given....
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 12 Jul 2012, 02:08
Simple interest means you get the same interest every year. I think the one you calculated was compounded interest. Please correct me if I am wrong.
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] New post 13 Jul 2012, 02:36
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SOLUTION

If $5,000 invested for one year at p percent simple annual interest yields $500, what amount must be invested at k percent simple annual interest for one year to yield the same number of dollars?

Simple interest = Principal * Interest rate * Time, so we have that $500=$5,000*\frac{p}{100}*1, which gives p=10%

(1) k = 0.8p --> k=8% --> $500=Principal *\frac{8}{100}*1. Sufficient to calculate Principal.
(2) k = 8. $500=Principal *\frac{8}{100}*1. Sufficient to calculate Principal.

Answer: D.

_________________

NEW TO MATH FORUM? PLEASE READ THIS: ALL YOU NEED FOR QUANT!!!

PLEASE READ AND FOLLOW: 11 Rules for Posting!!!

RESOURCES: [GMAT MATH BOOK]; 1. Triangles; 2. Polygons; 3. Coordinate Geometry; 4. Factorials; 5. Circles; 6. Number Theory; 7. Remainders; 8. Overlapping Sets; 9. PDF of Math Book; 10. Remainders; 11. GMAT Prep Software Analysis NEW!!!; 12. SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) NEW!!!; 12. Tricky questions from previous years. NEW!!!;

COLLECTION OF QUESTIONS:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS ; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


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Re: If $5,000 invested for one year at p percent simple annual   [#permalink] 13 Jul 2012, 02:36
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