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

It is currently 04 Jul 2015, 21:25

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

Pat invested x dollars in a fund that paid 8 percent annual

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
User avatar
Joined: 08 Jun 2004
Posts: 498
Location: Europe
Followers: 1

Kudos [?]: 24 [0], given: 0

Pat invested x dollars in a fund that paid 8 percent annual [#permalink] New post 09 May 2006, 00:15
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

76% (01:50) correct 24% (01:08) wrong based on 43 sessions
Pat invested x dollars in a fund that paid 8 percent annual interest, compounded annually. Which of the following represents the value, in dollars, of Pat's investment plus interest at the end of 5 years&

A. 5(0.08x)
B. 5(1.08x)
C. {1+5(0.08)}x
D. (1.08)^5 *(x)
E. (1.08x)^5
[Reveal] Spoiler: OA
Director
Director
avatar
Joined: 13 Nov 2003
Posts: 790
Location: BULGARIA
Followers: 1

Kudos [?]: 30 [0], given: 0

Re: Pat invested x dollars in a fund that paid 8 percent annual [#permalink] New post 09 May 2006, 01:05
Let the amount invested is S. 8% annual interest compounded anualy means that in 1 year S will increase with 8% or 1,08*S. In the second year you will have 1,08*S+ 1,08*S*0,08=1,08*S*(1+0,08)=1.08^2*S, then in five years it would be in 5 th power respectively, or D)
Director
Director
avatar
Joined: 24 Oct 2005
Posts: 660
Location: London
Followers: 1

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

Re: Pat invested x dollars in a fund that paid 8 percent annual [#permalink] New post 09 May 2006, 01:30
Use formula

A = P(1 + r)^n

P = principal
r = rate compounded annually
n = no of years

x(1 + .08)^5

Ans = D

**********

A more detailes formula when the interst is compounded more than 1 time a year :

A = P* [ (1+r/n) ^nt ]

n = no of times interest is compunded.
t = no of years.
Director
Director
avatar
Joined: 27 May 2008
Posts: 550
Followers: 7

Kudos [?]: 223 [0], given: 0

Re: Pat invested x dollars in a fund that paid 8 percent annual [#permalink] New post 12 Jul 2008, 08:44
D

thats the formula... A = P(1+r/100)^n

A = Final amount
P = inital amount
r = rate of interest in %
n = number of periods
Re: Pat invested x dollars in a fund that paid 8 percent annual   [#permalink] 12 Jul 2008, 08:44
    Similar topics Author Replies Last post
Similar
Topics:
27 Experts publish their posts in the topic An investment of d dollars at k percent simple annual 144144 11 10 Dec 2010, 10:16
13 On a certain date, Pat invested $10,000 at x percent annual arjtryarjtry 12 22 Jul 2008, 17:59
An investment of d dollars at k percent simple annual leeye84 4 12 Jul 2007, 11:03
An investment of d dollars at k percent simple annual ayl989 2 20 Apr 2007, 19:05
An investment of d dollars at k percent simple annual lan583 2 22 Aug 2006, 11:08
Display posts from previous: Sort by

Pat invested x dollars in a fund that paid 8 percent annual

  Question banks Downloads My Bookmarks Reviews Important topics  


cron

GMAT Club MBA Forum Home| About| Privacy Policy| 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®.