Last visit was: 22 May 2026, 02:23 It is currently 22 May 2026, 02:23
Home
Messages
Tests
Schools
Events
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.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 21 May 2026
Posts: 110,782
Own Kudos:
816,265
 [9]
Given Kudos: 106,358
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 110,782
Kudos: 816,265
 [9]
$3,000 is the initial amount placed in an account and the interest 16 Nov 2022, 09:21
1
Kudos
Add Kudos
8
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

55% (hard)

Question Stats:

68% (02:45) correct 32% (02:33) wrong based on 161 sessions

History

Date
Time
Result
Not Attempted Yet
$3,000 is the initial amount placed in an account and the interest compounds monthly, and the total value is $3,090 at the end of the first month. At the end of the second month, what fraction of the total interest of the two months is the interest of the second month?

A. 100/203
B. 1/2
C. 102/203
D. 103/203
E. 105/203
ShowHide Answer
Official Answer
D
User avatar
stne
User avatar
Joined: 27 May 2012
Last visit: 21 May 2026
Posts: 1,814
Own Kudos:
2,112
 [3]
Given Kudos: 687
Posts: 1,814
Kudos: 2,112
 [3]
$3,000 is the initial amount placed in an account and the interest 25 Nov 2022, 04:22
3
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
$3,000 is the initial amount placed in an account and the interest compounds monthly, and the total value is $3,090 at the end of the first month. At the end of the second month, what fraction of the total interest of the two months is the interest of the second month?

A. 100/203
B. 1/2
C. 102/203
D. 103/203
E. 105/203
Show more

Interest rate \(= \frac{90}{3000}*100 =3\%\)

Principal for second month \(3090\)

Interest for the second month \(\frac{3}{100}*3090 =92.7\)

Total interest \(=90+92.7 = 182.7\)

Required fraction \(= \frac{92.7}{182.7}= \frac{309}{609}=\frac{103}{203}\)

Ans D

Hope it's clear.
User avatar
Gmat860sanskar
User avatar
Joined: 05 May 2023
Last visit: 21 May 2026
Posts: 268
Own Kudos:
123
Given Kudos: 86
Schools: ISB '27 INSEAD Aug '27 NUS '27
GMAT Focus 1: 605 Q82 V78 DI80
Products:
GMAT Club Tests Forum Quiz
Schools: ISB '27 INSEAD Aug '27 NUS '27
GMAT Focus 1: 605 Q82 V78 DI80
Posts: 268
Kudos: 123
$3,000 is the initial amount placed in an account and the interest 11 Mar 2024, 08:18
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Please explain any easy method to solve this problem. Thanks
User avatar
NamDuong
User avatar
Joined: 18 Sep 2023
Last visit: 21 May 2026
Posts: 7
Given Kudos: 160
Location: Viet Nam
Posts: 7
Kudos: 0
$3,000 is the initial amount placed in an account and the interest 01 Apr 2026, 11:35
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Gmat860sanskar
Please explain any easy method to solve this problem. Thanks
Show more
I believe it's best to remember this formula: A=P(1+r/n)^(nt). Then you can apply it to all other problems related to exponential growth without thinking much.

  • [color=#000000][b][color=#000000][size=100]P : principal (initial amount)[/size][/color][/color][/b]
  • [color=#000000][b][color=#000000][size=100]r : annual interest rate (decimal)[/size][/color][/color][/b]
  • [color=#000000][b][color=#000000][size=100]n : the frequency of compounds per year [/size][/color][/color][/b]
  • t : total length of time the money stays in the account (in years)

Total amount received in the first month: 3000(1+r/12)^(12*1/12)=3090 -> r=0.36
Total amount received in the second month: 3000(1+0.36/12)^(12*2/12)=3182.7
Total interest earned in two months: 3182.7-3000=182.7
Interest earned in 2nd month: 182.7-90=92.7

-> 92.7/182.7=103/205

Btw do you have any tips to simplify such type of functions quickly? Please share~~
Moderators:
Bunuel
Math Expert
110782 posts
Krunaal
Tuck School Moderator
852 posts