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?