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John deposits $ 10000 in a savings certificate, earning p

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John deposits $ 10000 in a savings certificate, earning p [#permalink]

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New post 21 Dec 2008, 09:01
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John deposits $ 10000 in a savings certificate, earning p percent annual interest compounded quarterly. What is the value of p?

1] During the term of the certificates, John earned $18 more than he would if the interest were not compounded.
2] John withdraws all the money in 6 months after the deposit.
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Re: DS-savings certificate [#permalink]

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New post 21 Dec 2008, 12:39
From stmt1:
10000*(1+p/100)^n - 10000*p*n/100 = 18

Since, there are two variables and only one equation, stmt1 is insufficient.

From stmt2, n = 1/2. and hence combining this with 1, p can be calculated.

Hence, C.
Re: DS-savings certificate   [#permalink] 21 Dec 2008, 12:39
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John deposits $ 10000 in a savings certificate, earning p

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