|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
21 Feb 2022, 06:10
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
85%
(hard)
Question Stats:
55% (03:04) correct
45%
(02:51)
wrong
based on 107
sessions
History
Date
Time
Result
Not Attempted Yet
At the beginning of 2009, equal amounts were invested in two accounts each paying x% annual interest. The first account paid simple interest, and the second paid interest compounded annually. If the interest earned on the second account after two years was 18% greater than the interest earned on the first account, what is the value of x?
A) 9
B) 12
C) 18
D) 24
E) 36
A) 9
B) 12
C) 18
D) 24
E) 36
21 Feb 2022, 17:45
Kudos
Bookmarks
sjuniv32
Breaking Down the Info:
For simple interest, two years of x% interest is simply \(2x\%\) interest.
Then for compound interest, we need to write the total amount at the end \((1 + x\%)^2 = 1 + 2x\% + (x\%)^2\) first and subtract 1 to get the interest itself is \(2x\% + (x\%)^2\).
The compound interest is 18% greater than the simple interest, so \(2x\% + (x\%)^2 = 1.18 * 2x\%\).
Then \((x\%)^2 = 0.18 * 2x\%\)
\(x^2 = \frac{0.18 * 2x }{ \%} = 36x\)
\(x = 36\)
Answer: E
23 Jan 2025, 21:58
Kudos
Bookmarks
