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

 It is currently 25 Sep 2016, 22:24

### 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

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

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

### Show Tags

09 Jul 2012, 04:46
1
KUDOS
Expert's post
3
This post was
BOOKMARKED
00:00

Difficulty:

5% (low)

Question Stats:

82% (02:06) correct 18% (01:15) wrong based on 434 sessions

### HideShow timer Statistics

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

Diagnostic Test
Question: 40
Page: 26
Difficulty: 550
[Reveal] Spoiler: OA

_________________
Math Expert
Joined: 02 Sep 2009
Posts: 34830
Followers: 6482

Kudos [?]: 82625 [1] , given: 10108

### Show Tags

09 Jul 2012, 06:06
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.

Regards,
Manager
Joined: 11 Jul 2012
Posts: 50
GMAT 1: 650 Q49 V29
Followers: 0

Kudos [?]: 29 [0], given: 20

### Show Tags

11 Jul 2012, 11:46
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..
_________________

Bole So Nehal.. Sat Siri Akal.. Waheguru ji help me to get 700+ score !

Manager
Joined: 11 Jul 2012
Posts: 50
GMAT 1: 650 Q49 V29
Followers: 0

Kudos [?]: 29 [0], given: 20

### Show Tags

12 Jul 2012, 03:08
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.
Math Expert
Joined: 02 Sep 2009
Posts: 34830
Followers: 6482

Kudos [?]: 82625 [0], given: 10108

### Show Tags

23 Feb 2015, 19:42
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: If $5,000 invested for one year at p percent simple annual [#permalink] 23 Feb 2015, 19:42 Similar topics Replies Last post Similar Topics: 2 On January 1, 2003, Jack invested$5,000 at r percent interest ra 2 14 Jun 2016, 11:48
5 Saul invests an amount of dollars in investment A at i% simple annual 7 28 Apr 2015, 05:26
2 Jake invested x dollars for a simple annual interest rate of y percent 2 09 Dec 2014, 07:44
1 Pamela and Joe invested some money at annual simple interest 2 17 Oct 2012, 02:08