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A certain money market account that had a balance of $48,000 during al

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A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post 07 Feb 2019, 00:47
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A
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C
D
E

Difficulty:

  45% (medium)

Question Stats:

62% (01:42) correct 38% (01:46) wrong based on 47 sessions

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A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post Updated on: 08 Feb 2019, 00:58
Bunuel wrote:
A certain money market account that had a balance of $48,000 during all of last month earned $360 in interest for the month. At what simple annual interest rate did the account earn interest last month?

A. 7%
B. 7.50%
C. 8%
D. 8.50%
E. 9%


SI= P *R *T/100
48000∗(1+r1/00∗1/12)=3600
r-9%
IMO E

Originally posted by Archit3110 on 07 Feb 2019, 01:00.
Last edited by Archit3110 on 08 Feb 2019, 00:58, edited 1 time in total.
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Re: A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post 07 Feb 2019, 05:05
360*12=4320 annual int.

4320 / 48000 = 9%
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Re: A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post 07 Feb 2019, 05:22
Bunuel wrote:
A certain money market account that had a balance of $48,000 during all of last month earned $360 in interest for the month. At what simple annual interest rate did the account earn interest last month?

A. 7%
B. 7.50%
C. 8%
D. 8.50%
E. 9%


So P = 48000, need to find r, SI = 360

48000*r*1/100 = 360

r = 360/480 = 7.50

B
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Re: A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post 07 Feb 2019, 14:44
Bunuel wrote:
A certain money market account that had a balance of $48,000 during all of last month earned $360 in interest for the month. At what simple annual interest rate did the account earn interest last month?

A. 7%
B. 7.50%
C. 8%
D. 8.50%
E. 9%


\(48000*(1 + \frac{r}{100} * \frac{1}{12}) = 3600\)

\(r = 9%\)
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Re: A certain money market account that had a balance of $48,000 during al  [#permalink]

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New post 23 Apr 2019, 19:31
Bunuel wrote:
A certain money market account that had a balance of $48,000 during all of last month earned $360 in interest for the month. At what simple annual interest rate did the account earn interest last month?

A. 7%
B. 7.50%
C. 8%
D. 8.50%
E. 9%



Since 1 month is 1/12 of a year, we can create the equation:

48,000 x r/100 x 1/12 = 360

48,000r/1200 = 360

40r = 360

r = 9

Alternate Solution:

If the investment earns $360 simple interest in one month, then in one year, it will earn 360 x 12 = $4,320 in interest.

Expressed as a percentage, the annual interest rate is 4,320/48,000 = 0.09, or 9%

Answer: E
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Re: A certain money market account that had a balance of $48,000 during al   [#permalink] 23 Apr 2019, 19:31
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