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Joan took out a mortgage from hel local bank. Each monthly [#permalink]
20 Apr 2012, 23:54

00:00

A

B

C

D

E

Difficulty:

25% (low)

Question Stats:

77% (02:59) correct
22% (01:16) wrong based on 86 sessions

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage?

Stats by August 2014 28, Asian-American, Raised in the Bronx, NY. Moved to Houston by myself to graduate HS. 2.64 (downward trend) Economics degree from UT-Austin in Dec. 2009. No excuse, I spent 100% building a student organization that I'm still very active with today. GMAT Goal: 710+, exam scheduled for September 14, 2013 at 8AM CST

WE: Sales Team Manager at Apple - business development and strategies for the Apple Online Store, Australia. I've also built my own consulting practice working with a successful Startup in Austin, TX, managing their online brand and helping them with analytics. Past WE: Financial Services advising at Northwestern Mutual Financial, Equities Trading at Kershner Trading Group Post-MBA Goals: Strategy Consulting or Brand Management in Tech/Fashion

EC: 3 years of National Council on Fraternity (VP, President), Current Chairman of Texas Exes, Asian Alumni Network (2012-2014) Target: (1) Stern (2) Fuqua (3) McCombs (FT/PT) Giving this 110%. I appreciate all advice and encouragement. Thank you, everyone.

Last edited by Bunuel on 21 Apr 2012, 00:08, edited 1 time in total.

Re: Need help with exponents problem (bothering me) [#permalink]
21 Apr 2012, 00:13

2

This post received KUDOS

Expert's post

jxatrillion wrote:

Joan took out a mortgage from her bank. Each monthly payment she makes must triple the amount of the previous month's payment. If her first payment is $100, and the total that she must pay back is $328,000, how many months will it take Joan to pay her mortgage?

The answer, according to Veritas is "8." I put 6, which seems to be incorrect. Really bothers me but if you guys can help... kudos!

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage? A. 6 B. 8 C. 10 D. 11 E. 13

Since her first payment is $100 and all subsequent payments must be three times as many as the payment for the previous month, then her monthly payments will be: $100; $300; $900; $2,700; ...

As you can see we have a geometric progression with the first term of 100 and the common ratio of 3. The sum of the first n terms of geometric progression is given by: sum=\frac{b*(r^{n}-1)}{r-1}, (where b is the first term, n # of terms and r is a common ratio \neq{1}).

So, \frac{100*(3^{n}-1)}{3-1}=$328,000 --> 3^n-1=6,560 --> 3^n=6,561. Now, the unit's digit of 3 in a positive integer power repeats in pattern of 4: {3, 9, 7, 1}. Since the last digit of 3^n is 1 then n can be 4 (3^4=81), 8, 12, ... only 8 is present among options.

Answer: B.

P.S. Please always post answer choices for PS problems and do not reword or shorten the questions. _________________

Re: Joan took out a mortgage from hel local bank. Each monthly [#permalink]
21 Apr 2012, 05:59

1

This post received KUDOS

jxatrillion wrote:

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage?

Re: Need help with exponents problem (bothering me) [#permalink]
21 Apr 2012, 11:06

Bunuel wrote:

jxatrillion wrote:

Joan took out a mortgage from her bank. Each monthly payment she makes must triple the amount of the previous month's payment. If her first payment is $100, and the total that she must pay back is $328,000, how many months will it take Joan to pay her mortgage?

The answer, according to Veritas is "8." I put 6, which seems to be incorrect. Really bothers me but if you guys can help... kudos!

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage? A. 6 B. 8 C. 10 D. 11 E. 13

Since her first payment is $100 and all subsequent payments must be three times as many as the payment for the previous month, then her monthly payments will be: $100; $300; $900; $2,700; ...

As you can see we have a geometric progression with the first term of 100 and the common ration of 3. The sum of the first n terms of geometric progression is given by: sum=\frac{b*(r^{n}-1)}{r-1}, (where b is the first term, n # of terms and r is a common ratio \neq{1}).

So, \frac{100*(3^{n}-1)}{3-1}=$328,000 --> 3^n-1=6,560 --> 3^n=6,561. Now, the unit's digit of 3 in positive integer power repeats in pattern of 4: {3, 9, 7, 1}. Since the last digit of 3^n is 1 then n can be 4 (3^4=81), 8, 12, ... only 8 is present among options.

Answer: B.

P.S. Please always post answer choices for PS problems and do not reword or shorten the questions.

I apologize. I wasn't able to copy and paste from the online application so I must've missed something from typing it. Thank you for your and everyone's answers though. I really appreciate it.

I'm not sure how I got 6 now. Was just really bugging me how I didn't see 8 last night. Thanks again, team.
_________________

Stats by August 2014 28, Asian-American, Raised in the Bronx, NY. Moved to Houston by myself to graduate HS. 2.64 (downward trend) Economics degree from UT-Austin in Dec. 2009. No excuse, I spent 100% building a student organization that I'm still very active with today. GMAT Goal: 710+, exam scheduled for September 14, 2013 at 8AM CST

WE: Sales Team Manager at Apple - business development and strategies for the Apple Online Store, Australia. I've also built my own consulting practice working with a successful Startup in Austin, TX, managing their online brand and helping them with analytics. Past WE: Financial Services advising at Northwestern Mutual Financial, Equities Trading at Kershner Trading Group Post-MBA Goals: Strategy Consulting or Brand Management in Tech/Fashion

EC: 3 years of National Council on Fraternity (VP, President), Current Chairman of Texas Exes, Asian Alumni Network (2012-2014) Target: (1) Stern (2) Fuqua (3) McCombs (FT/PT) Giving this 110%. I appreciate all advice and encouragement. Thank you, everyone.

Joan took a mortgage from her bank [#permalink]
17 Sep 2012, 12:04

Joan took a mortgage from her bank each payment she makes must be triple the amount of the previous year if er first month payment is 100$ and the total amount she must pay back is 328000 hovv many months she vvill take to pay back her mortgage

Re: Joan took a mortgage from her bank [#permalink]
17 Sep 2012, 12:08

Expert's post

venmic wrote:

Joan took a mortgage from her bank each payment she makes must be triple the amount of the previous year if er first month payment is 100$ and the total amount she must pay back is 328000 hovv many months she vvill take to pay back her mortgage

8

can please advice hovv to best solve this problem

Merging similar topics. Please refer to the solution above.
_________________

Re: Need help with exponents problem (bothering me) [#permalink]
25 Sep 2012, 02:29

Bunuel wrote:

jxatrillion wrote:

Joan took out a mortgage from her bank. Each monthly payment she makes must triple the amount of the previous month's payment. If her first payment is $100, and the total that she must pay back is $328,000, how many months will it take Joan to pay her mortgage?

The answer, according to Veritas is "8." I put 6, which seems to be incorrect. Really bothers me but if you guys can help... kudos!

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage? A. 6 B. 8 C. 10 D. 11 E. 13

Since her first payment is $100 and all subsequent payments must be three times as many as the payment for the previous month, then her monthly payments will be: $100; $300; $900; $2,700; ...

As you can see we have a geometric progression with the first term of 100 and the common ratio of 3. The sum of the first n terms of geometric progression is given by: sum=\frac{b*(r^{n}-1)}{r-1}, (where b is the first term, n # of terms and r is a common ratio \neq{1}).

So, \frac{100*(3^{n}-1)}{3-1}=$328,000 --> 3^n-1=6,560 --> 3^n=6,561. Now, the unit's digit of 3 in a positive integer power repeats in pattern of 4: {3, 9, 7, 1}. Since the last digit of 3^n is 1 then n can be 4 (3^4=81), 8, 12, ... only 8 is present among options.

Answer: B.

P.S. Please always post answer choices for PS problems and do not reword or shorten the questions.

Hi Bunuel, I solved this question in 10 minutes by logic, but how do you get geometric progression formula, could you please give me any explainations? Thanks in advance

Re: Need help with exponents problem (bothering me) [#permalink]
25 Sep 2012, 05:52

Expert's post

mario1987 wrote:

Bunuel wrote:

jxatrillion wrote:

Joan took out a mortgage from her bank. Each monthly payment she makes must triple the amount of the previous month's payment. If her first payment is $100, and the total that she must pay back is $328,000, how many months will it take Joan to pay her mortgage?

The answer, according to Veritas is "8." I put 6, which seems to be incorrect. Really bothers me but if you guys can help... kudos!

Joan took out a mortgage from hel local bank. Each monthly mortgage payment she makes must be triple the amount of the previous month's payment. If her first payment is $100, and the total amount she must pay back is $328000, how many months will it take Joan to pay back her mortgage? A. 6 B. 8 C. 10 D. 11 E. 13

Since her first payment is $100 and all subsequent payments must be three times as many as the payment for the previous month, then her monthly payments will be: $100; $300; $900; $2,700; ...

As you can see we have a geometric progression with the first term of 100 and the common ratio of 3. The sum of the first n terms of geometric progression is given by: sum=\frac{b*(r^{n}-1)}{r-1}, (where b is the first term, n # of terms and r is a common ratio \neq{1}).

So, \frac{100*(3^{n}-1)}{3-1}=$328,000 --> 3^n-1=6,560 --> 3^n=6,561. Now, the unit's digit of 3 in a positive integer power repeats in pattern of 4: {3, 9, 7, 1}. Since the last digit of 3^n is 1 then n can be 4 (3^4=81), 8, 12, ... only 8 is present among options.

Answer: B.

P.S. Please always post answer choices for PS problems and do not reword or shorten the questions.

Hi Bunuel, I solved this question in 10 minutes by logic, but how do you get geometric progression formula, could you please give me any explainations? Thanks in advance

Re: Joan took out a mortgage from hel local bank. Each monthly [#permalink]
27 Sep 2012, 22:41

Joan starts off with 100 $ .. which is to be tripled every month

Her monthly payments look like this :

100 , 300 , 900 , 2700 ......... Upto 328000

This can be re written as :

100 x 1 , 100 x 3 , 100 x 9 , 100 x 27 ...... 100 x 3280

So we have 1 , 3 , 9 , 27 ..... 32800 in GP

We know that a =1 , and r = 3 ( its easy to figure it out by looking at the question , but regardless of it being mentioned in the question we can still compute the value of r using the formula Tn = a3^n-1 ...)

Therefore to find the Sum of n terms of a GP we use this formula :

Sn = a (1-r^n) / 1 -r

Using this and plugging in the information we get ...

3280 = 1 - 3^n / 1-3 ; 1-3^n / -2

Cross multiplying we get

3280 x -2 = 1- 3^n

- 6560 = 1 - 3^n

- 6561 = - 3 ^n

6561 = 3 ^n (negatives cancel out)

6561 can also be re written as 3 ^ 8

Therefore ; 3 ^8 = 3 ^n

Thus n = 8 (B)
_________________

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