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$4800 becomes $6000 in 4 years at a certain rate of compound interest.

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Joined: 25 Dec 2018
Posts: 484
Location: India
Concentration: General Management, Finance
GMAT Date: 02-18-2019
GPA: 3.4
WE: Engineering (Consulting)
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$4800 becomes $6000 in 4 years at a certain rate of compound interest.  [#permalink]

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New post 06 Mar 2019, 01:19
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80% (02:25) correct 20% (01:55) wrong based on 20 sessions

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$4800 becomes $6000 in 4 years at a certain rate of compound interest. What would have been the amount after 12 years?

A) $9500
B) $9375
C) $9250
D) $9775
E) $9250
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Posts: 7953
Re: $4800 becomes $6000 in 4 years at a certain rate of compound interest.  [#permalink]

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New post 07 Mar 2019, 07:42
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mangamma wrote:
$4800 becomes $6000 in 4 years at a certain rate of compound interest. What would have been the amount after 12 years?

A) $9500
B) $9375
C) $9250
D) $9775
E) $9250


Calculation of r and then finding amount after 12 years will be calculation intensive.
A very innovative way to avoid cumbersome calculation would be ..
The formula for CI is Amount = P\((1+\frac{r}{100})^t\).... 6000 = 4800\((1+\frac{r}{100})^4..........(1+\frac{r}{100})^4=\frac{6000}{4800}.\)..
we are looking for 4800\((1+\frac{r}{100})^12\)=4800\(((1+\frac{r}{100})^4)^3\)=4800\((\frac{6000}{4800})^3=4800*\frac{5*5*5}{4*4*4}=75*125=9375\)

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Re: $4800 becomes $6000 in 4 years at a certain rate of compound interest.   [#permalink] 07 Mar 2019, 07:42
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$4800 becomes $6000 in 4 years at a certain rate of compound interest.

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