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

It is currently 23 Oct 2014, 10:59

Going on right now!

Interview Invites from Chicago - Booth | Join the chat room for Live Updates.


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

ps INTEREST ( ddelta course )

  Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:
Senior Manager
Senior Manager
avatar
Joined: 30 May 2005
Posts: 283
Followers: 1

Kudos [?]: 3 [0], given: 0

ps INTEREST ( ddelta course ) [#permalink] New post 13 Sep 2005, 13:27
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

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

here it is ....

Ricardo deposits $1,000 in a bank account that pays 10%
interest, compounded semiannually. Poonam deposits $1,000 in
a bank account that pays 10% interest, compounded annually.
If no more deposits are made, what is the difference between
the two account balances after 1 year?

A. $2.50
B. $10
C. $5
D. $15
E. $100

plz explains yours works
thanks
VP
VP
avatar
Joined: 22 Aug 2005
Posts: 1128
Location: CA
Followers: 1

Kudos [?]: 32 [0], given: 0

 [#permalink] New post 13 Sep 2005, 13:40
A $ 2.50

For Poonam, interest =
1000 * 10 / 100 (for 10%) * 1 (1 year)
or
$ 100

For Ricardo, Interest:

1000 * (1 + (10/2)/100) ^2 - 1000
(since interest is comounded semi-annually we double number of period (to 2) and half the interest rate (10/2))

= $ 102.5

ans: $102.5 - $100 = $2.50
  [#permalink] 13 Sep 2005, 13:40
    Similar topics Author Replies Last post
Similar
Topics:
2 PS - Interest RGM 3 21 Jul 2010, 06:51
Gmatprep - ps: interest olive 3 11 Aug 2008, 15:55
Experts publish their posts in the topic interest ps marcodonzelli 5 20 Jan 2008, 21:00
ps - interest christoph 4 06 Nov 2005, 07:28
PS compound interest rate oh gal len 3 06 Nov 2004, 06:02
Display posts from previous: Sort by

ps INTEREST ( ddelta course )

  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®.