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# An investment yielded an interest payment of \$350 each month when the

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Math Expert
Joined: 02 Sep 2009
Posts: 57279
An investment yielded an interest payment of \$350 each month when the  [#permalink]

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30 Jun 2016, 07:51
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Difficulty:

65% (hard)

Question Stats:

67% (02:52) correct 33% (02:19) wrong based on 42 sessions

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An investment yielded an interest payment of \$350 each month when the annual interest rate was 9%, what is the amount of the investment that should be invested with an annual interest rate of 8% if We want to gain 15% more each month?

A. \$60,375
B. \$50,400
C. \$41,300
D. \$32,500
E. \$25,100

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Re: An investment yielded an interest payment of \$350 each month when the  [#permalink]

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30 Jun 2016, 10:02

An investment yielded an interest payment of \$350 each month when the annual interest rate was 9%, what is the amount of the investment that should be invested with an annual interest rate of 8% if We want to gain 15% more each month?

Based on first statement the total interest earned = 350 * 12 = Principal * interest rate(9/100)
No need to solve for principal here, just continue....

So find the new principal for revised interest rate and 10% more interest, so 350 * 12 * 1.15 = Principal * interest rate (8/100)
solving for Principal = 60,375.
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Re: An investment yielded an interest payment of \$350 each month when the  [#permalink]

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04 Aug 2019, 11:34
Bunuel wrote:
An investment yielded an interest payment of \$350 each month when the annual interest rate was 9%, what is the amount of the investment that should be invested with an annual interest rate of 8% if We want to gain 15% more each month?

A. \$60,375
B. \$50,400
C. \$41,300
D. \$32,500
E. \$25,100

We see that we want to have an interest payment 350 x 1.15 = \$402.50 each month. We can create the equation:

x * 0.08/12 = 402.50

0.08x = 4,830

x = 4,830/0.08 = \$60,375

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Re: An investment yielded an interest payment of \$350 each month when the   [#permalink] 04 Aug 2019, 11:34
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