Last visit was: 23 Apr 2026, 01:42 It is currently 23 Apr 2026, 01:42
Home
Messages
Tests
Schools
Events
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 22 Apr 2026
Posts: 109,763
Own Kudos:
810,720
 [13]
Given Kudos: 105,850
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,763
Kudos: 810,720
 [13]
A savings account earned 1% interest compounded each month, credited o 26 Jan 2016, 08:17
2
Kudos
Add Kudos
11
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

95% (hard)

Question Stats:

34% (01:42) correct 66% (01:40) wrong based on 246 sessions

History

Date
Time
Result
Not Attempted Yet
A savings account earned 1% interest compounded each month, credited on the last day of the month. On December 8 there was $1,115.67 in the account. During which month did the account first exceed $1,100?

(1) $1,000 was deposited on the previous December 31.
(2) There were no deposits or withdrawals this year.
ShowHide Answer
Official Answer
B
User avatar
Kurtosis
User avatar
Current Student
Joined: 13 Apr 2015
Last visit: 10 Nov 2021
Posts: 1,384
Own Kudos:
5,236
 [1]
Given Kudos: 1,228
Location: India
Products:
My Reviews
Posts: 1,384
Kudos: 5,236
 [1]
A savings account earned 1% interest compounded each month, credited o 26 Jan 2016, 20:34
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Amount = 1115.67, Interest = 1%
Using the above two values, we can calculate the month in which the Amount exceeded 1100 provided there was no addition or subtraction to the value in the account

St1: Not sufficient --> We do not know if there were any deposits or withdrawals
St2: Sufficient. (1115.67/1.01) gives the amount for previous month and so on. The exact month can be calculated if there are no deposits or withdrawals.

Answer: B
User avatar
siddharthkapoor
User avatar
GMAT Club Reviews PM Intern
Joined: 10 Apr 2018
Last visit: 12 Sep 2025
Posts: 527
Own Kudos:
834
Given Kudos: 522
Location: India
Schools: ISB'22 (D)
GMAT 1: 680 Q48 V34
GPA: 3.3
Products:
My Reviews
Schools: ISB'22 (D)
GMAT 1: 680 Q48 V34
Posts: 527
Kudos: 834
A savings account earned 1% interest compounded each month, credited o 12 Oct 2019, 11:29
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel
A savings account earned 1% interest compounded each month, credited on the last day of the month. On December 8 there was $1,115.67 in the account. During which month did the account first exceed $1,100?

(1) $1,000 was deposited on the previous December 31.
(2) There were no deposits or withdrawals this year.
Show more

We're given the final amount, time period, type of interest, and rate of interest. Using these information, we can find the month in which the account first exceed $1,100 provided we can be sure of whether or not there were any other transactions involved during the course of time.

(1) Since we do not know whether there were any deposits or withdrawals, we can't find out answer.
Thus, not sufficient.

(2) 1000=(1115.67)/\((1.01)^t\)
From the above equation we can find the value of t.
Thus, sufficient.

Therefore, the answer is option B.
User avatar
gvij2017
User avatar
Joined: 09 Aug 2017
Last visit: 18 Jun 2024
Posts: 663
Own Kudos:
508
Given Kudos: 778
Posts: 663
Kudos: 508
A savings account earned 1% interest compounded each month, credited o 13 Oct 2019, 03:09
Kudos
Add Kudos
Bookmarks
Bookmark this Post
I think it is 1100 instead of 1000 in your explanation for statement-2.

iamsiddharthkapoor
Bunuel
A savings account earned 1% interest compounded each month, credited on the last day of the month. On December 8 there was $1,115.67 in the account. During which month did the account first exceed $1,100?

(1) $1,000 was deposited on the previous December 31.
(2) There were no deposits or withdrawals this year.

We're given the final amount, time period, type of interest, and rate of interest. Using these information, we can find the month in which the account first exceed $1,100 provided we can be sure of whether or not there were any other transactions involved during the course of time.

(1) Since we do not know whether there were any deposits or withdrawals, we can't find out answer.
Thus, not sufficient.

(2) 1000=(1115.67)/\((1.01)^t\)
From the above equation we can find the value of t.
Thus, sufficient.

Therefore, the answer is option B.
Show more
avatar
ironwoman24
avatar
Joined: 21 Jan 2021
Last visit: 11 Mar 2022
Posts: 27
Own Kudos:
5
Given Kudos: 62
Posts: 27
Kudos: 5
A savings account earned 1% interest compounded each month, credited o 04 Jun 2021, 01:32
Kudos
Add Kudos
Bookmarks
Bookmark this Post
How did you arrive at the second formula ? I am stuck there.

1000=(1115.67)/(1.01)t???



siddharthkapoor
Bunuel
A savings account earned 1% interest compounded each month, credited on the last day of the month. On December 8 there was $1,115.67 in the account. During which month did the account first exceed $1,100?

(1) $1,000 was deposited on the previous December 31.
(2) There were no deposits or withdrawals this year.

We're given the final amount, time period, type of interest, and rate of interest. Using these information, we can find the month in which the account first exceed $1,100 provided we can be sure of whether or not there were any other transactions involved during the course of time.

(1) Since we do not know whether there were any deposits or withdrawals, we can't find out answer.
Thus, not sufficient.

(2) 1000=(1115.67)/\((1.01)^t\)
From the above equation we can find the value of t.
Thus, sufficient.

Therefore, the answer is option B.
Show more
User avatar
sanya2711
User avatar
Joined: 19 Jan 2021
Last visit: 11 Aug 2024
Posts: 79
Own Kudos:
15
Given Kudos: 225
Location: India
Schools: ESSEC (D) INSEAD MiM "24 (I) HEC MiM "25 (I)
GMAT 1: 690 Q49 V34
GPA: 3.57
Schools: ESSEC (D) INSEAD MiM "24 (I) HEC MiM "25 (I)
GMAT 1: 690 Q49 V34
Posts: 79
Kudos: 15
A savings account earned 1% interest compounded each month, credited o 06 Jun 2021, 21:27
Kudos
Add Kudos
Bookmarks
Bookmark this Post
can someone please provide an explanation to the question. i am unable to understand why the answer will be option b and not option c.
avatar
Dvaishnav
avatar
Joined: 25 Sep 2019
Last visit: 05 Aug 2021
Posts: 39
Own Kudos:
31
 [1]
Given Kudos: 84
GMAT 1: 730 Q50 V40
GMAT 1: 730 Q50 V40
Posts: 39
Kudos: 31
 [1]
A savings account earned 1% interest compounded each month, credited o 18 Jun 2021, 13:30
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
sanya2711
can someone please provide an explanation to the question. i am unable to understand why the answer will be option b and not option c.
Show more


We can do it without any math, just based on reasoning - Just as GMAT likes

We know the ending amount (i.e. amount on 8th December). At some point in the past few months, the account was worth $1000. From that point to December 8, our account value increased by $ 115.67 (1115.67 - 1000). This amount is $1000 + 1% interest for X months + deposits - withdrawals.
Here X is the duration between Dec 8 and the time when the account reached $1000.

Now, statement 2 says that there were no deposits/withdrawals this year. Hence, 1115.67 = 1000 + 1% interest for X months. In this equation, the only unknown is X. Its one equation, one unknown. Hence, X can be calculated.
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,960
Own Kudos:
1,117
Posts: 38,960
Kudos: 1,117
A savings account earned 1% interest compounded each month, credited o 08 Apr 2026, 08:11
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
Bunuel
Math Expert
109763 posts
kingbucky
498 posts
Gmat860sanskar
212 posts