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09 Jul 2012, 04:46
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Difficulty:

5% (low)

Question Stats:

82% (02:05) correct 18% (01:16) wrong based on 421 sessions

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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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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,
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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..
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Manager
Joined: 11 Jul 2012
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GMAT 1: 650 Q49 V29
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Kudos [?]: 29 [0], given: 20

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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.
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Kudos [?]: 79377 [0], given: 10016

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23 Feb 2015, 19:42
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