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

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Senior Manager
Joined: 25 Dec 2018
Posts: 457
Location: India
Concentration: General Management, Finance
GMAT Date: 02-18-2019
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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02 Mar 2019, 10:41
1
00:00

Difficulty:

75% (hard)

Question Stats:

53% (02:14) correct 48% (02:04) wrong based on 40 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
Intern
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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02 Mar 2019, 21:24
3
2
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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##### General Discussion
Intern
Joined: 01 Dec 2018
Posts: 27
Re: A man invested \$ P in a long term investment plan for 24 years at an i  [#permalink]

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05 Aug 2019, 08:32
mangamma wrote:
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

24 years / 6 years as every 6 years the investment becomes thrice of the investment . So we get 24/6 = 4 intervals .

Now,
P\$ ---------3P\$ (1-6 YEARS)
3P\$--(*3)--9P& (6-12 YEARS)
9P\$--(*3)--27P\$ (12- 18 YEARS)
27P\$-(*3)--81P\$ (18- 24 YEARS)

NOW How much more amount could he have gotten after 24 years , simply find difference between the amt he received and the final amt which he would have received after 24 years = 3P\$ -81P\$ = 78\$ ,

Re: A man invested \$ P in a long term investment plan for 24 years at an i   [#permalink] 05 Aug 2019, 08:32
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# A man invested \$ P in a long term investment plan for 24 years at an i

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