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Bob invested one half of his savings in a bond that paid simple intere

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Bob invested one half of his savings in a bond that paid simple intere [#permalink]

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New post 21 Apr 2015, 05:46
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Bob invested one half of his savings in a bond that paid simple interest for 3 years and received $825 as interest. He invested the remaining in a bond that paid compound interest (compounded annually) for the same 3 years at the same rate of interest and received $1001 as interest. What was the annual rate of interest?

(A) 5%
(B) 10%
(C) 12%
(D) 15%
(E) 20%

Kudos for a correct solution.

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Re: Bob invested one half of his savings in a bond that paid simple intere [#permalink]

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New post 21 Apr 2015, 06:14
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Hi,
IMO it should be E 20%
reason: though I did this kind of question first time so need to know if its a correct answer and easy way to solve?
simple interest 825/3 = 275 per year
simple interest 275 275 275
compound interest for first year will be same as simple interest that is 275
total difference in interest 1001-825 = 176/3 approx 59 per year but make sure that we are assuming here by approximation rule
so it obvious that for the second year the difference will be less than 59. say 55
55/275 is 20%
now check the compounding of each year at this rate. so it will come up as 1001.

regards
celestial


kudos if its a correct solution


Bunuel wrote:
Bob invested one half of his savings in a bond that paid simple interest for 3 years and received $825 as interest. He invested the remaining in a bond that paid compound interest (compounded annually) for the same 3 years at the same rate of interest and received $1001 as interest. What was the annual rate of interest?

(A) 5%
(B) 10%
(C) 12%
(D) 15%
(E) 20%

Kudos for a correct solution.
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Joined: 20 Apr 2015
Posts: 7
Re: Bob invested one half of his savings in a bond that paid simple intere [#permalink]

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New post 23 Apr 2015, 00:23
Bunuel wrote:
Bob invested one half of his savings in a bond that paid simple interest for 3 years and received $825 as interest. He invested the remaining in a bond that paid compound interest (compounded annually) for the same 3 years at the same rate of interest and received $1001 as interest. What was the annual rate of interest?

(A) 5%
(B) 10%
(C) 12%
(D) 15%
(E) 20%

Kudos for a correct solution.


Need solution for this question, Assuming from options from 2nd yr interest on wards doesn't seem feasible
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Bob invested one half of his savings in a bond that paid simple intere [#permalink]

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New post 27 Apr 2015, 03:28
Bunuel wrote:
Bob invested one half of his savings in a bond that paid simple interest for 3 years and received $825 as interest. He invested the remaining in a bond that paid compound interest (compounded annually) for the same 3 years at the same rate of interest and received $1001 as interest. What was the annual rate of interest?

(A) 5%
(B) 10%
(C) 12%
(D) 15%
(E) 20%

Kudos for a correct solution.


CHECK VERITAS PREP OFFICIAL SOLUTION HERE:
_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

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Re: Bob invested one half of his savings in a bond that paid simple intere [#permalink]

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New post 12 Apr 2018, 13:10
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Re: Bob invested one half of his savings in a bond that paid simple intere   [#permalink] 12 Apr 2018, 13:10
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