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Updated on: 23 Feb 2012, 23:17
2
6
00:00

Difficulty:

15% (low)

Question Stats:

79% (01:14) correct 21% (01:13) wrong based on 689 sessions

### HideShow timer Statistics

$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t. What amount will the deposit grow to in 3 years? (1) D(1) = 11,000 (2) r=10 Below is a flawed version of the above correct question: 10.$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))t What amount will the deposit grow to in 3 years?

(1) D(t) = 11,000
(2) r=10

Bunuel

Originally posted by quantum on 14 Jun 2008, 09:10.
Last edited by Bunuel on 23 Feb 2012, 23:17, edited 5 times in total.
Edited the question and added the OA
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14 Jun 2008, 10:16
1
B

statement 1: D(t) = 11000, but t could be any thing, it could be 10 years or 2 years.
insuff

statement 2: suff, because it gives the interest rate and you have the years in the stem, you can find out the total after 3 years.
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14 Jun 2008, 20:25
1
quantum wrote:

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23 Feb 2012, 22:59
3
quantum wrote:
10. $10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))t What amount will the deposit grow to in 3 years? (1) D(t) = 11,000 (2) r=10 Can anybody explain the logic please? Thank you! Two things: Formula should be $$D(t)=10,000(1+\frac{r}{100})^t$$ and statement (1) should read $$D(1)=11,000$$ (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years?

Question: $$D(3)=10,000(1+\frac{r}{100})^3=?$$. Basically the only thing we need is the value of $$r$$.

(1) D(1) = 11,000 --> $$D(1)=10,000(1+\frac{r}{100})^1=11,000$$ --> we can solve for r. Sufficient.

(2) r=10 --> directly gives the value of r. Sufficient.

Hope it's clear.
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Re: $10,000 is deposited in a certain account that pays r [#permalink] ### Show Tags 23 Feb 2012, 23:10 quantum wrote:$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t. What amount will the deposit grow to in 3 years?

(1) D(1) = 11,000
(2) r=10

Below is a flawed version of the above correct question:
10. $10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))t What amount will the deposit grow to in 3 years? (1) D(t) = 11,000 (2) r=10 Bunuel Hi The answer is indeeded +1 D Statement Break Down : You need to know R. t is already know at 3 years Statement 1 : D(1) : 11,000 Thus you can easily find out 'R' by equating D(1) & the eqn of D(t) Thus sufficient Statement 2 : R know hence sufficient Thus we can find R which is the _________________ Giving +1 kudos is a better way of saying 'Thank You'. Manager Joined: 25 Nov 2011 Posts: 178 Location: India Concentration: Technology, General Management GPA: 3.95 WE: Information Technology (Computer Software) Re:$10,000 is deposited in a certain account that pays r  [#permalink]

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23 Feb 2012, 23:30
Bunuel wrote:
quantum wrote:
10. $10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))t What amount will the deposit grow to in 3 years? (1) D(t) = 11,000 (2) r=10 Can anybody explain the logic please? Thank you! Two things: Formula should be $$D(t)=10,000(1+\frac{r}{100})^t$$ and statement (1) should read $$D(1)=11,000$$ (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years?

Question: $$D(3)=10,000(1+\frac{r}{100})^3=?$$. Basically the only thing we need is the value of $$r$$.

(1) D(1) = 11,000 --> $$D(1)=10,000(1+\frac{r}{100})^1=11,000$$ --> we can solve for r. Sufficient.

(2) r=10 --> directly gives the value of r. Sufficient.

Hope it's clear.

Agreed. But taking it on the face value, Statement 1 can give an impression that, for any value of t, D(t) gives 11000 ,which I think is not correct. Personally I don;t accept this statement, because in DS category, I do following activities:
1. Is the statement is supported for all situations by the premises/facts given in the question stem.
2. Once the answer for the above is Yes, then I will think, does the statement support all situations of the question.

In this exercise, I get a 'No' to the first part from the question. Hence, the answer should be B.

But, as the statement 1, does not hold good on its face value, I just tried mapping it to the question stem for specific scenario and then got the answer D.

Isn't this correct approach?
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Math Expert
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Posts: 53066
Re: $10,000 is deposited in a certain account that pays r [#permalink] ### Show Tags 24 Feb 2012, 00:36 Chembeti wrote: Bunuel wrote: quantum wrote: 10.$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))t What amount will the deposit grow to in 3 years?

(1) D(t) = 11,000
(2) r=10

Can anybody explain the logic please?
Thank you!

Two things:
Formula should be $$D(t)=10,000(1+\frac{r}{100})^t$$ and statement (1) should read $$D(1)=11,000$$ (since two statements in DS never contradict and give true information then r=10 must give 11,000 for t=1 as it does). So the question should read:

$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t What amount will the deposit grow to in 3 years? Question: $$D(3)=10,000(1+\frac{r}{100})^3=?$$. Basically the only thing we need is the value of $$r$$. (1) D(1) = 11,000 --> $$D(1)=10,000(1+\frac{r}{100})^1=11,000$$ --> we can solve for r. Sufficient. (2) r=10 --> directly gives the value of r. Sufficient. Answer: D. Hope it's clear. Agreed. But taking it on the face value, Statement 1 can give an impression that, for any value of t, D(t) gives 11000 ,which I think is not correct. Personally I don;t accept this statement, because in DS category, I do following activities: 1. Is the statement is supported for all situations by the premises/facts given in the question stem. 2. Once the answer for the above is Yes, then I will think, does the statement support all situations of the question. In this exercise, I get a 'No' to the first part from the question. Hence, the answer should be B. But, as the statement 1, does not hold good on its face value, I just tried mapping it to the question stem for specific scenario and then got the answer D. Isn't this correct approach? If we take (1) as it was written: D(t) = 11,000 then it would mean that D(t) has the same value no matter the time period and annual interest, which makes no sense at all. Though technically it still would be sufficient as it would mean that for t=3 the answer is also 11,000. Having said that I recommend not to spend time on flawed version of a question as you won't see such one on the real test. _________________ Manager Joined: 25 Nov 2011 Posts: 178 Location: India Concentration: Technology, General Management GPA: 3.95 WE: Information Technology (Computer Software) Re:$10,000 is deposited in a certain account that pays r  [#permalink]

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24 Feb 2012, 01:37
Bunuel wrote:

Having said that I recommend not to spend time on flawed version of a question as you won't see such one on the real test.

Sure. I was just thinking whether such questions would appear in a real test, now my doubt is cleared
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-Aravind Chembeti

Math Expert
Joined: 02 Sep 2009
Posts: 53066

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18 Dec 2017, 05:16
quantum wrote:
$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years in given by D(t)=10,000(1+(r/100))^t. What amount will the deposit grow to in 3 years? (1) D(1) = 11,000 (2) r=10 Deposit amount to be calculated by formula D(t)=10,000(1+(r/100))^t The time = 3 years given Question: The deposit amount after 3 years = ? All we need to answer this question is the RATE at which the amount is growing over time. Statement 1: D(1) = 11,000 i.e. amount after 1 year becomes 11000 from 10000 i.e. rate of growth per year = 10% SUFFICIENT Statement 2: r = 10 SUFFICIENT Answer: option D _________________ Prosper!!! GMATinsight Bhoopendra Singh and Dr.Sushma Jha e-mail: info@GMATinsight.com I Call us : +91-9999687183 / 9891333772 Online One-on-One Skype based classes and Classroom Coaching in South and West Delhi http://www.GMATinsight.com/testimonials.html ACCESS FREE GMAT TESTS HERE:22 ONLINE FREE (FULL LENGTH) GMAT CAT (PRACTICE TESTS) LINK COLLECTION Non-Human User Joined: 09 Sep 2013 Posts: 9893 Re:$10,000 is deposited in a certain account that pays r  [#permalink]

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02 Jan 2019, 04:32
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