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# An investment of y dollars at p percent simple interest yiel

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Joined: 28 May 2009
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Concentration: Strategy, General Management
GMAT Date: 03-22-2013
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Kudos [?]: 233 [3] , given: 91

An investment of y dollars at p percent simple interest yiel [#permalink]

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05 Feb 2013, 16:54
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78% (02:38) correct 22% (01:45) wrong based on 147 sessions

An investment of y dollars at p percent simple interest yields $600 interest over a 3-year period. In terms of y, what dollar amount invested at the same rate will yield the same amount of interest over a 2-year period? (A) $$\frac{2}{3}y$$ (B) $$\frac{3}{4}y$$ (C) $$\frac{3}{2}y$$ (D) $$2y$$ (E) $$3y$$ Source: Gmat Hacks 1800 [Reveal] Spoiler: OA _________________ Veritas Prep GMAT Instructor Joined: 16 Oct 2010 Posts: 7380 Location: Pune, India Followers: 2292 Kudos [?]: 15151 [1] , given: 224 Re: An investment of y dollars at p percent simple interest [#permalink] ### Show Tags 05 Feb 2013, 21:59 1 This post received KUDOS Expert's post megafan wrote: An investment of y dollars at p percent simple interest yields$600 interest over a 3-year period. In terms of y, what dollar amount invested at the same rate will yield the same amount of interest over a 2-year period?

(A) $$\frac{2}{3}y$$

(B) $$\frac{3}{4}y$$

(C) $$\frac{3}{2}y$$

(D) $$2y$$

(E) $$3y$$

Source: Gmat Hacks 1800

Let's start by assigning suitable values to some variables so that we can easily calculate the answer.

$600 simple interest earned in 3 yrs means$200 earned every year. So if dollar amount y = 1000, rate of interest p = 20%

We need $600 in 2 yrs i.e.$300 every year at 20% rate.

300 = 20% of Amount invested
Amount invested = $1500 i.e. (3/2)y Answer (C) _________________ Karishma Veritas Prep | GMAT Instructor My Blog Get started with Veritas Prep GMAT On Demand for$199

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Re: An investment of y dollars at p percent simple interest yiel [#permalink]

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06 Feb 2013, 00:51
megafan wrote:
An investment of y dollars at p percent simple interest yields $600 interest over a 3-year period. In terms of y, what dollar amount invested at the same rate will yield the same amount of interest over a 2-year period? (A) $$\frac{2}{3}y$$ (B) $$\frac{3}{4}y$$ (C) $$\frac{3}{2}y$$ (D) $$2y$$ (E) $$3y$$ Source: Gmat Hacks 1800 Another copied question from GMAT Hacks. Original question from GMAT Prep: Quote: An investment of d dollars at k percent simple annual interest yields$600 over a 2 year period. In terms of d, what dollar amount invested at the same rate will yield $2,4000 over a 3 year period? A. (2d)/3 B. (3d)/4 C. (4d)/3 D. (3d)/2 E. (8d)/3 Discussed here: an-investment-of-d-dollars-at-k-percent-simple-annual-106083.html _________________ GMAT Club Legend Joined: 09 Sep 2013 Posts: 15506 Followers: 651 Kudos [?]: 210 [0], given: 0 Re: An investment of y dollars at p percent simple interest yiel [#permalink] ### Show Tags 19 Apr 2015, 05:23 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ GMAT Club Legend Joined: 09 Sep 2013 Posts: 15506 Followers: 651 Kudos [?]: 210 [0], given: 0 Re: An investment of y dollars at p percent simple interest yiel [#permalink] ### Show Tags 27 Feb 2017, 05:45 Hello from the GMAT Club BumpBot! Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos). Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email. _________________ Target Test Prep Representative Status: Founder & CEO Affiliations: Target Test Prep Joined: 14 Oct 2015 Posts: 1027 Location: United States (CA) Followers: 34 Kudos [?]: 542 [0], given: 2 Re: An investment of y dollars at p percent simple interest yiel [#permalink] ### Show Tags 01 Mar 2017, 18:09 megafan wrote: An investment of y dollars at p percent simple interest yields$600 interest over a 3-year period. In terms of y, what dollar amount invested at the same rate will yield the same amount of interest over a 2-year period?

(A) $$\frac{2}{3}y$$

(B) $$\frac{3}{4}y$$

(C) $$\frac{3}{2}y$$

(D) $$2y$$

(E) $$3y$$

We are given that an investment of y dollars at p percent simple interest yields 600 dollars over a 3-year period. Since simple interest = principal x rate x time, we have:

600 = (y)(p/100)(3)

200 = yp/100

20,000 = yp

20,000/y = p

We now need to determine, in terms of y, the dollar amount invested that will yield the same amount of interest over a 2-year period.

Our rate is (20,000/y)/100 = 200/y and we can let n = the dollar amount. We then have:

600 = (n)(200/y)(2)

300 = (n)(200/y)

300y = 200n

(3/2)y = n

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Re: An investment of y dollars at p percent simple interest yiel   [#permalink] 01 Mar 2017, 18:09
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