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# If $5,000 invested for one year at p percent simple annual  Question banks Downloads My Bookmarks Reviews Important topics Author Message TAGS: Math Expert Joined: 02 Sep 2009 Posts: 29856 Followers: 4926 Kudos [?]: 53976 [1] , given: 8260 If$5,000 invested for one year at p percent simple annual [#permalink]  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

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

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Math Expert
Joined: 02 Sep 2009
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Kudos [?]: 53976 [1] , given: 8260

Re: If $5,000 invested for one year at p percent simple annual [#permalink] 09 Jul 2012, 03:46 1 This post received KUDOS Expert's post 1 This post was BOOKMARKED 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. _________________ Senior Manager Joined: 28 Mar 2012 Posts: 287 Concentration: Entrepreneurship GMAT 1: 640 Q50 V26 GMAT 2: 660 Q50 V28 GMAT 3: 730 Q50 V38 Followers: 23 Kudos [?]: 257 [0], given: 23 Re: If$5,000 invested for one year at p percent simple annual [#permalink]  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.

Regards,
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] 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. Senior Manager Joined: 06 Aug 2011 Posts: 405 Followers: 2 Kudos [?]: 119 [0], given: 82 Re: If$5,000 invested for one year at p percent simple annual [#permalink]  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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Manager
Joined: 11 Jul 2012
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GMAT 1: 650 Q49 V29
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Kudos [?]: 15 [0], given: 20

Re: If $5,000 invested for one year at p percent simple annual [#permalink] 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.... Intern Joined: 12 Jul 2012 Posts: 22 Followers: 0 Kudos [?]: 0 [0], given: 0 Re: If$5,000 invested for one year at p percent simple annual [#permalink]  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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Posts: 29856
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] 13 Jul 2012, 02:36 Expert's post 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. _________________ GMAT Club Legend Joined: 09 Sep 2013 Posts: 6784 Followers: 369 Kudos [?]: 83 [0], given: 0 Re: If$5,000 invested for one year at p percent simple annual [#permalink]  23 Feb 2015, 18:42
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Re: If $5,000 invested for one year at p percent simple annual [#permalink] 23 Feb 2015, 18:42 Similar topics Replies Last post Similar Topics: 5 Saul invests an amount of dollars in investment A at i% simple annual 7 28 Apr 2015, 04:26 Jake invested x dollars for a simple annual interest rate of y percent 2 09 Dec 2014, 06:44 1 Pamela and Joe invested some money at annual simple interest 2 17 Oct 2012, 01:08 8 On a certain date, Hannah invested$5,000 at x percent 10 20 Aug 2012, 02:25