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14 Oct 2019, 03:03
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Difficulty:
15%
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Question Stats:
87% (01:32) correct
13%
(01:09)
wrong
based on 47
sessions
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At the end of the year 2002, Monica and Chandler each purchased a certificate of deposit that paid the same rate of interest, and each held the certificate of deposit through the end of 2002. If Chandler invested X dollars and Monica invested $130,000, and if Chandler earned interest in 2002 totaling $45,000, what was the amount of interest that Monica earned on her $130,000 investment?
(1) The rate of interest on the certificate of deposit that Chandler and Monica each purchased was 8.5% annually.
(2) In 2002, Chandler invested $529,412 in the certificate of deposit.
(1) The rate of interest on the certificate of deposit that Chandler and Monica each purchased was 8.5% annually.
(2) In 2002, Chandler invested $529,412 in the certificate of deposit.
30 Oct 2019, 03:44
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(1) The rate of interest on the certificate of deposit that Chandler and Monica each purchased was 8.5% annually.
(2) In 2002, Chandler invested $529,412 in the certificate of deposit.
Question: what was the amount of interest that Monica earned on her $130,000 investment?
Let the Principal amount be 'P' , number of years of investment = 'n' and Rate of interest = 'R'
Let the Simple Interest generated be 'SI'.
By Formula, SI = (P*n*R)/100
The question asks SI for Monica's Principal Investment of $130,000
Using (1) we know R = 8.5% and n =1
Therefore, SI = (130,000 * 1 * 8.5)/100 --> Sufficient
Using (2) Chandler's Principal Investment = $ 529,412 and n = 1 year and SI for Chandler's investment =$45,000 (given in question)
Even though Rate of interest R remains unknown here, we can calculate using the SI formula
45000 = 529,412 * 1 * R
Since the question says Chandler and Monica received the same Rate of Interest, we can plug in the R from (2) to get Monica's SI -- > Sufficient
Ans: D
(2) In 2002, Chandler invested $529,412 in the certificate of deposit.
Question: what was the amount of interest that Monica earned on her $130,000 investment?
Let the Principal amount be 'P' , number of years of investment = 'n' and Rate of interest = 'R'
Let the Simple Interest generated be 'SI'.
By Formula, SI = (P*n*R)/100
The question asks SI for Monica's Principal Investment of $130,000
Using (1) we know R = 8.5% and n =1
Therefore, SI = (130,000 * 1 * 8.5)/100 --> Sufficient
Using (2) Chandler's Principal Investment = $ 529,412 and n = 1 year and SI for Chandler's investment =$45,000 (given in question)
Even though Rate of interest R remains unknown here, we can calculate using the SI formula
45000 = 529,412 * 1 * R
Since the question says Chandler and Monica received the same Rate of Interest, we can plug in the R from (2) to get Monica's SI -- > Sufficient
Ans: D
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