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

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New post 30 Jun 2016, 07:51
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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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New post 30 Jun 2016, 10:02
Answer is A : 60,375

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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New post 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

Answer: A
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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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