Mr. Smythe places 10,000 in a savings account that earns 6 : Quant Question Archive [LOCKED]
Check GMAT Club App Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 07 Dec 2016, 01:06

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# Mr. Smythe places 10,000 in a savings account that earns 6

 post reply Question banks Downloads My Bookmarks Reviews Important topics
Author Message
Eternal Intern
Joined: 07 Jun 2003
Posts: 467
Location: Lone Star State
Followers: 1

Kudos [?]: 142 [0], given: 0

Mr. Smythe places 10,000 in a savings account that earns 6 [#permalink]

### Show Tags

30 Jul 2003, 17:02
This topic is locked. If you want to discuss this question please re-post it in the respective forum.

Mr. Smythe places 10,000 in a savings account that earns 6 percent simple annual interest. At the end of the year, he withdraws the interest that has accumulated during the year, and places it in a seperate account that earns 10 percent simple annual interest. What is in the account(s) at the end of the second year?

( 1) How can there be any in the first account if he withdraws it from the first?
( 2) the problem says nowhere to add back the 10,000.
Basically, it sucks!

VT
_________________

Ride em cowboy

GMAT Instructor
Joined: 07 Jul 2003
Posts: 770
Location: New York NY 10024
Schools: Haas, MFE; Anderson, MBA; USC, MSEE
Followers: 23

Kudos [?]: 198 [0], given: 0

Re: Help with Word Problem [#permalink]

### Show Tags

30 Jul 2003, 17:18
Curly05 wrote:
Mr. Smythe places 10,000 in a savings account that earns 6 percent simple annual interest. At the end of the year, he withdraws the interest that has accumulated during the year, and places it in a seperate account that earns 10 percent simple annual interest. What is in the account(s) at the end of the second year?

( 1) How can there be any in the first account if he withdraws it from the first?
( 2) the problem says nowhere to add back the 10,000.
Basically, it sucks!

VT

There is absolutely nothing wrong with or ambiguous in the way this problem is stated.
_________________

Best,

AkamaiBrah
Former Senior Instructor, Manhattan GMAT and VeritasPrep
Vice President, Midtown NYC Investment Bank, Structured Finance IT
MFE, Haas School of Business, UC Berkeley, Class of 2005
MBA, Anderson School of Management, UCLA, Class of 1993

Eternal Intern
Joined: 07 Jun 2003
Posts: 467
Location: Lone Star State
Followers: 1

Kudos [?]: 142 [0], given: 0

### Show Tags

30 Jul 2003, 17:45
Well, show me how they arrived at their reasoning, captain.
_________________

Ride em cowboy

Manager
Joined: 24 Jun 2003
Posts: 146
Location: India
Followers: 2

Kudos [?]: 2 [0], given: 0

### Show Tags

31 Jul 2003, 04:24
Curly05 wrote:
Well, show me how they arrived at their reasoning, captain.

Curly, try and solve the problem - its pretty simple.

I get the total amount at the end of the second year as 10600 in first account and 660 in second account = total of 11260
Eternal Intern
Joined: 07 Jun 2003
Posts: 467
Location: Lone Star State
Followers: 1

Kudos [?]: 142 [0], given: 0

My problem with it [#permalink]

### Show Tags

31 Jul 2003, 06:18
Mr. Smythe places 10,000 in a savings account that earns 6 percent simple annual interest. At the end of the year, he withdraws the interest that has accumulated during the year, and places it in a seperate account that earns 10 percent simple annual interest. What is in the account(s) at the end of the second year?
(1) How can there be any in the first account if he withdraws it from the first?
(2) the problem says nowhere to add back the 10,000.

there's NOTHING questionable here: simple and clear as 1+1=2

your question (1): he withdraws the interest ONLY
your question (2): the 10,000 STAYS in first account

Year#1:
10000 * .06 = 600 = interest during the year

Year#2:
10000 * .06 = 600 + 10000 = 10600 : amount in 1st account
600 * .10 = 60 + 600 = 660 : amount in 2nd account

If he withdraws the interest he earned during the first year, how can it stay in the first account, i.e.- 10,600?

This is Kap's problem; I doubt it ETS words it in this style.
VT
_________________

Ride em cowboy

Intern
Joined: 01 Jul 2003
Posts: 25
Followers: 0

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

### Show Tags

31 Jul 2003, 07:57
curly - the problem is perfectly worded - you just missed "the catch". Yes, the $600 was taken out of the account at the end of year 1. HOWEVER, the account with$10K earns an ADDITIONAL \$600 in the 2nd year - the question asks how much money is in the accounts at the end of 2 years.
[#permalink] 31 Jul 2003, 07:57
Display posts from previous: Sort by

# Mr. Smythe places 10,000 in a savings account that earns 6

 post reply Question banks Downloads My Bookmarks Reviews Important topics

 Powered by phpBB © phpBB Group and phpBB SEO Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.