GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 21 Apr 2019, 09:24

### 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

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

### Show Tags

02 Jul 2017, 02:23
00:00

Difficulty:

55% (hard)

Question Stats:

77% (02:39) correct 23% (02:45) wrong based on 70 sessions

### HideShow timer Statistics

A sum of money invested under simple interest, amounts to $1200 in three years and$1500 in five years. What is the rate at which the sum of money was invested?

(A) 10%
(B) 15%
(C) 20%
(D) 25%
(E) 45%

_________________
Director
Joined: 04 Dec 2015
Posts: 750
Location: India
Concentration: Technology, Strategy
WE: Information Technology (Consulting)

### Show Tags

02 Jul 2017, 03:44
1
1
The amount at the end of 5 years is 1500 and at the end of 3 years is 1200
Total interest earned in these 2 years = 1500-1200 = 300
Interest earned per year = $$\frac{300}{2}$$ = 150

The original amount invested at the beginning of year 1 = 1200-3*(150) = 1200-450 = 750
Annual rate of interest = $$\frac{150}{750}$$ = $$\frac{1}{5}$$ = 20%

VP
Status: Learning
Joined: 20 Dec 2015
Posts: 1018
Location: India
Concentration: Operations, Marketing
GMAT 1: 670 Q48 V36
GRE 1: Q157 V157
GPA: 3.4
WE: Engineering (Manufacturing)

### Show Tags

03 Jul 2017, 11:42
It is given that:
3PR/100 + P = 1200 ------- (1)

PR = 100 (1200 - P)/3 ------- (2)

Also given:
5PR/100 + P = 1500 -----(3)

substituting equation 2 into 3,
500/300*(1200-P) + P = 1500

or P = 750 ----(4)

further substituting (4) into (2)

R is 20%
Retired Moderator
Joined: 19 Mar 2014
Posts: 931
Location: India
Concentration: Finance, Entrepreneurship
GPA: 3.5
Re: A sum of money invested under simple interest, amounts to $1200 in [#permalink] ### Show Tags 03 Jul 2017, 12:29 Bunuel wrote: A sum of money invested under simple interest, amounts to$1200 in three years and $1500 in five years. What is the rate at which the sum of money was invested? (A) 10% (B) 15% (C) 20% (D) 25% (E) 45% I got the answer of C - 20% however my method was a bit longer one. Some really good solutions out there. _________________ "Nothing in this world can take the place of persistence. Talent will not: nothing is more common than unsuccessful men with talent. Genius will not; unrewarded genius is almost a proverb. Education will not: the world is full of educated derelicts. Persistence and determination alone are omnipotent." Best AWA Template: https://gmatclub.com/forum/how-to-get-6-0-awa-my-guide-64327.html#p470475 Re: A sum of money invested under simple interest, amounts to$1200 in   [#permalink] 03 Jul 2017, 12:29
Display posts from previous: Sort by