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Bob invested $2000 in fund A and $1000 in fund B. Over the next two ye
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22 Dec 2015, 21:47
22 Dec 2015, 21:47
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Bob invested $2000 in fund A and $1000 in fund B. Over the next two years, the money in Fund A earned a total interest of 12 percent for the two years combined and the money in fund B earned 30 percent annual interest compounded annually. Two years after bob made these investments. Bob's investment in fund A was worth how much more than his investment in fund B?
A. $500
B. $550
C. $600
D. $650
E. $700
A. $500
B. $550
C. $600
D. $650
E. $700
Math Revolution GMAT Instructor
Joined: 16 Aug 2015
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GMAT 1: 760 Q51 V42
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Re: Bob invested $2000 in fund A and $1000 in fund B. Over the next two ye
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23 Dec 2015, 05:41
23 Dec 2015, 05:41
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Forget conventional ways of solving math questions. In PS, IVY approach is the easiest and quickest way to find the answer.
Bob invested $2000 in fund A and $1000 in fund B. Over the next two years, the money in Fund A earned a total interest of 12 percent for the two years combined and the money in fund B earned 30 percent annual interest compounded annually. Two years after bob made these investments. Bob's investment in fund A was worth how much more than his investment in fund B?
1. $500
2. $550
3. $600
4. $650
5. $700
Bob earned 2000*(1+0.12) in total by fund A and earned 1000*(1+0.3)^2 in total by fund B.
So 2000*(1.12) - 1000*(1.69)= 550.
The answer is, therefore, (B).
Bob invested $2000 in fund A and $1000 in fund B. Over the next two years, the money in Fund A earned a total interest of 12 percent for the two years combined and the money in fund B earned 30 percent annual interest compounded annually. Two years after bob made these investments. Bob's investment in fund A was worth how much more than his investment in fund B?
1. $500
2. $550
3. $600
4. $650
5. $700
Bob earned 2000*(1+0.12) in total by fund A and earned 1000*(1+0.3)^2 in total by fund B.
So 2000*(1.12) - 1000*(1.69)= 550.
The answer is, therefore, (B).
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Re: Bob invested $2000 in fund A and $1000 in fund B. Over the next two ye
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01 May 2016, 07:29
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[quote="RSOHAL"]Bob invested $2000 in fund A and $1000 in fund B. Over the next two years, the money in Fund A earned a total interest of 12 percent for the two years combined and the money in fund B earned 30 percent annual interest compounded annually. Two years after bob made these investments. Bob's investment in fund A was worth how much more than his investment in fund B?
1. $500
2. $550
3. $600
4. $650
5. $700
interest on fund A will be 240. rate of interest will be 6% per annum simple interest as 12% is for 2 year. this will make investment A 2240 at the end of 2nd year.
interest on fund B will be 690 on 30% interest compounded annually. This will make investment B 1690 at the end of 2nd year.
Difference in investment A and investment B=2240-1690=550
answer is B.
1. $500
2. $550
3. $600
4. $650
5. $700
interest on fund A will be 240. rate of interest will be 6% per annum simple interest as 12% is for 2 year. this will make investment A 2240 at the end of 2nd year.
interest on fund B will be 690 on 30% interest compounded annually. This will make investment B 1690 at the end of 2nd year.
Difference in investment A and investment B=2240-1690=550
answer is B.
