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07 Feb 2019, 00:47
00:00

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 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%

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

4320 / 48000 = 9%
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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] ### Show Tags 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 _________________ # Scott Woodbury-Stewart Founder and CEO Scott@TargetTestPrep.com 122 Reviews 5-star rated online GMAT quant self study course See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button. 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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