Last visit was: 11 Jul 2025, 17:46 It is currently 11 Jul 2025, 17:46
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.
Close
Request Expert Reply
Confirm Cancel
555-605 Level|   Percent and Interest Problems|                              
User avatar
A2D2
Joined: 11 Jan 2022
Last visit: 28 Apr 2025
Posts: 37
Own Kudos:
Given Kudos: 104
Posts: 37
Kudos: 1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
User avatar
egmat
User avatar
e-GMAT Representative
Joined: 02 Nov 2011
Last visit: 11 Jul 2025
Posts: 4,601
Own Kudos:
32,349
 [3]
Given Kudos: 686
GMAT Date: 08-19-2020
Expert
Expert reply
Posts: 4,601
Kudos: 32,349
 [3]
2
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
avatar
ManifestDreamMBA
Joined: 17 Sep 2024
Last visit: 11 Jul 2025
Posts: 975
Own Kudos:
Given Kudos: 192
Products:
Posts: 975
Kudos: 628
Kudos
Add Kudos
Bookmarks
Bookmark this Post
avatar
ManifestDreamMBA
Joined: 17 Sep 2024
Last visit: 11 Jul 2025
Posts: 975
Own Kudos:
Given Kudos: 192
Products:
Posts: 975
Kudos: 628
Kudos
Add Kudos
Bookmarks
Bookmark this Post
say x = 1
At the end of 1 year it is 1.08, then 1 was deposited again. So total at the start of year 2 is 2.08. At the end you have 2.08 and the interest earned on this amount.
So the total at the end, i.e. w = 2.08 * 1.08
\(\frac{w}{(2.08 * 1.08) }= 1\)
Get it to a form to match the answer choices
\(\frac{w}{(1.08 + 1.08^2) }= x\) (as x = 1)
kajolnb
Alex deposited x dollars into a new account that earned 8 percent annual interest, compounded annually. One year later Alex deposited an additional x dollars into the account. If there were no other transactions and if the account contained w dollars at the end of two years, which of the following expresses x in terms of w ?


A. \(\frac{w}{1+1.08}\)

B. \(\frac{w}{1.08+1.16}\)

C. \(\frac{w}{1.16+1.24}\)

D. \(\frac{w}{1.08+1.08^2}\)

E. \(\frac{w}{1.08^2+1.08^2}\)
   1   2 
Moderators:
Math Expert
102635 posts
PS Forum Moderator
688 posts