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A man invested $ P in a long term investment plan for 24 years at an i

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Manager
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Joined: 25 Dec 2018
Posts: 129
Location: India
Concentration: General Management, Finance
GMAT 1: 590 Q48 V23
GPA: 3.4
WE: Engineering (Consulting)
A man invested $ P in a long term investment plan for 24 years at an i  [#permalink]

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New post 02 Mar 2019, 10:41
1
00:00
A
B
C
D
E

Difficulty:

  65% (hard)

Question Stats:

35% (02:14) correct 65% (02:20) wrong based on 17 sessions

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A man invested $ P in a long term investment plan for 24 years at an interest compounded annually. Due to some financeil crisis he had to withdraw money at the end of 6 years. How much more amount could be have gotten after 24 years if he received $ 3P after 6 years. It is known that there were no other charges of deduction in the plan?
A) 9P
B)24P
c)72P
D)78P
E)81P
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Joined: 21 Apr 2014
Posts: 32
Re: A man invested $ P in a long term investment plan for 24 years at an i  [#permalink]

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New post 02 Mar 2019, 21:24
3
1
This question is tricky at first since we don't know the compounding interest rate, and feels like perhaps we would need a compound interest formula to solve, but let's consider.

It started at P and then compounded 6 times and tripled itself to 3P. So this is more like a Geometric sequence question!

The rule is "P triples every 6 years."

Year 1 - P
Year 6 - 3P
Year 12 - 9P
Year 18 - 27P
Year 24 - 81P

How much more means we subtract 3P from 81P:
81P-3P = 78P

The answer is (D). This is an interesting question -- a sequence in disguise! :)
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Re: A man invested $ P in a long term investment plan for 24 years at an i   [#permalink] 02 Mar 2019, 21:24
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A man invested $ P in a long term investment plan for 24 years at an i

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