Find all School-related info fast with the new School-Specific MBA Forum

It is currently 24 May 2016, 10:03
GMAT Club Tests

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

On the first of the year, James invested x dollars at

  post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Director
Director
avatar
Joined: 29 Oct 2004
Posts: 863
Followers: 3

Kudos [?]: 108 [0], given: 0

On the first of the year, James invested x dollars at [#permalink]

Show Tags

New post 14 Jan 2005, 11:06
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

HideShow timer Statistics

This topic is locked. If you want to discuss this question please re-post it in the respective forum.

On the first of the year, James invested x dollars
at Proudstar bank in an account that yields 2% in
interest every quarter year. At the end of the
year, during which he made no additional deposits
or withdrawals, he had y dollars in the account.
If James had invested the same amount in
an account which pays interest on a yearly basis,
what must the interest rate be for James to have
y dollars at the end of the year?

(A) 2.04%
(B) 6.12%
(C) 8%
(D) 8.25%
(E) 10%
Manager
Manager
avatar
Joined: 25 Oct 2004
Posts: 247
Followers: 1

Kudos [?]: 19 [0], given: 0

 [#permalink]

Show Tags

New post 14 Jan 2005, 12:48
Is the answer C . I assume that interest is simple interest as nothing is mentioned in the question.
Current Student
avatar
Joined: 28 Dec 2004
Posts: 3385
Location: New York City
Schools: Wharton'11 HBS'12
Followers: 14

Kudos [?]: 227 [0], given: 2

 [#permalink]

Show Tags

New post 14 Jan 2005, 13:17
I was gonna pick C since its not clear if the interest is compounded or simple. normally if the question doesnt specify, it is assumed simple interest.
Senior Manager
Senior Manager
User avatar
Joined: 19 Nov 2004
Posts: 284
Location: Germany
Followers: 1

Kudos [?]: 22 [0], given: 0

 [#permalink]

Show Tags

New post 14 Jan 2005, 13:44
I would take it to be compound interest because of the words "yields". Since the quarterly yield is 2%, it means that every quarter yields 2% on the existing balance.

Answer: 8.25% (D)
Director
Director
avatar
Joined: 29 Oct 2004
Posts: 863
Followers: 3

Kudos [?]: 108 [0], given: 0

 [#permalink]

Show Tags

New post 14 Jan 2005, 14:19
OA is (D)
Should the problem say "compound interest 2%" instead? Because by what they says, people would think it is "simple interest" which is 0.02x4 for a year and that is (C).

This is a question from Princeton Review course.
  [#permalink] 14 Jan 2005, 14:19
Display posts from previous: Sort by

On the first of the year, James invested x dollars at

  post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

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®.