Jill invests $10000 in an account that pays an annual rate

Oldest

Best Reply

Author

Message

TAGS:

Magoosh GMAT Instructor

Joined: 28 Dec 2011

Posts: 823

Followers: 211

Kudos [?]: 573 [1] , given: 14

Jill invests $10000 in an account that pays an annual rate [#permalink]

24 Jan 2013, 18:09

This post received
KUDOS

00:00

Question Stats:

65% (01:46) correct

34% (00:40) wrong

based on 2 sessions

Jill invests $10000 in an account that pays an annual rate of 3.96%, compounding semi-annually. Approximately how much does she have in her account after two years?

(A) $10079.44
(B) $10815.83
(C) $12652.61
(D) $14232.14
(E) $20598.11

On the GMAT, you are not allowed to use a calculator, and yet the test can give you problems like this. It is so important to learn estimation skills that allow you to dispatch questions like this with simple arithmetic. For a full discussion of estimation strategies, as well as an analysis of this question, see:
http://magoosh.com/gmat/2012/the-power- ... mat-quant/

Mike :-)

[Reveal] Spoiler: OA

_________________

Mike McGarry
Magoosh Test Prep

Last edited by Bunuel on 25 Jan 2013, 05:24, edited 1 time in total.

RENAMED THE TOPIC.

Kaplan GMAT Prep Discount Codes

Knewton GMAT Discount Codes

Veritas Prep GMAT Discount Codes

Intern

Joined: 23 Jan 2013

Posts: 15

Concentration: Technology, Other

Followers: 0

Kudos [?]: 0 [0], given: 9

Re: Jill invests $10000 in an account that pays an annual rate [#permalink]

25 Jan 2013, 10:15

amount = principal * ( 1+ r/n) ^nt

Intern

Joined: 27 Dec 2012

Posts: 12

Followers: 0

Kudos [?]: 0 [0], given: 4

Re: Jill invests $10000 in an account that pays an annual rate [#permalink]

27 Jan 2013, 10:28

Very Simple question (I mean the options are very helpful)..

Let us consider interest rate as 4%. Therefore, in 6 months, the investment earns 200 dollars..

similarly...in next 6 months something more than 200 dollars...

therefore, in 2 years...10815 is the return..

Manager

Joined: 12 Jan 2013

Posts: 58

Location: United States (NY)

GMAT 1: 780 Q51 V47

GPA: 3.89

Followers: 7

Kudos [?]: 32 [1] , given: 13

Re: Jill invests $10000 in an account that pays an annual rate [#permalink]

29 Jan 2013, 23:49

This post received
KUDOS

rohitgupta86 wrote:

Very Simple question (I mean the options are very helpful)..

Exactly! Forget the "semi-annually".
4% per year means 8% for two years. Answer B.
_________________

Sergey Orshanskiy, Ph.D.

Re: Jill invests $10000 in an account that pays an annual rate [#permalink] 29 Jan 2013, 23:49

		Similar topics	Author	Replies	Last post
Similar Topics:		If $10,000 was invested at x percent simple annual interest	gmatmba	9	14 May 2006, 13:38
		Someone plans to invest $10,000 in an account paying 3%	apollo168	5	18 Aug 2006, 13:10
		$10,000 is deposited in a certain account that pays r	prasannar	1	10 May 2008, 03:13
	2	$10,000 is deposited in a certain account that pays r	quantum	10	14 Jun 2008, 10:10
		$10,000 is deposited in a certain account that pays r	praveenism	2	07 Jun 2010, 02:39

Jill invests $10000 in an account that pays an annual rate

Main navigation

GMAT Resources

Partners

MBA Resources

GMAT ® is a registered trademark of the Graduate Management Admission Council ® (GMAC ®). GMAT Club's website has not been reviewed or endorsed by GMAC.

GMAT Courses

Admissions Consulting

Jill invests $10000 in an account that pays an annual rate

Jill invests $10000 in an account that pays an annual rate

Main navigation

GMAT Resources

Partners

MBA Resources