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ytsjrock
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If $10,000 is invested at x percent simple annual interest for n years 28 Sep 2021, 16:26
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Maheemawho. Thank you
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If $10,000 is invested at x percent simple annual interest for n years 03 Dec 2022, 06:50
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"If $10,000 invested for one year at x percent simple annual interest yields $600 in interest" does not mean that x=6? ($10,000 * 6/100 = $600)

So the question gives us x=6.

"what amount (A) must be invested at y percent simple annual interest for one year to yield the same number of dollars ($600) in interest?"

It means that
$600 = A * y/100

So the question is, what is A?

(1) y = 3
$600 = A * 3/100
A=$20,000. SUFFICIENT

(2) y = 0.5x
y = 0.5 * 6 -> y=3
$600 = A * 3/100
A=$20,000. SUFFICIENT

Answer (D)
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If $10,000 is invested at x percent simple annual interest for n years 04 Mar 2026, 10:39
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If $10,000 is invested at x percent simple annual interest for n years, which of the following represents the total amount of interest, in dollars, that will be earned by this investment in the n years?


A. \(10,000(x^n)\)

B. \(10,000(\frac{x}{100})^n\)

C. \(10,000n(\frac{x}{100})\)

D. \(10,000(1+\frac{x}{100})^n\)

E. \(10,000n(1+\frac{x}{100})\)
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C




Nick Slavkovich, GMAT/GRE tutor with 20+ years of experience

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If $10,000 is invested at x percent simple annual interest for n years 12 Jun 2026, 06:09
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can someone please explain what is the difference between option B and option C. I selected option B, as i can find no difference between these 2 options (but the placing of n before and after the brackets).
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If $10,000 is invested at x percent simple annual interest for n years 17 Jun 2026, 01:12
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Hi gaurikhanna17,

You're right that B and C only differ in where the n sits, but that small change swaps one operation for a completely different one, and that's exactly the trap here.

The key idea: position of n is not cosmetic.

- In C, n is a multiplier: 10,000 x (x/100) x n. Multiplying by n means adding the same thing n times.
- In B, n is an exponent: 10,000 x (x/100)^n. Raising to the power n means multiplying the same thing by itself n times.

Those are two different operations, and only one matches simple interest.

Why C is right for simple interest

With simple interest, the rate is applied to the original $10,000 every year, so you earn the same amount each year:

- Interest in 1 year = 10,000 x (x/100)
- Over n years you just earn that same amount n times -> 10,000 x (x/100) x n = C.

That's repeated addition of the yearly interest - which is why n multiplies.

Why B is wrong

Raising the rate to the power n is what you'd do if the interest compounded (rate stacking on rate). That's a different kind of problem, and the question says simple interest, so B overshoots.

Lock it in with tiny numbers

Say the yearly interest is 2, over 3 years:

- Simple (multiply): 2 x 3 = 6
- Power (B's move): 2^3 = 8

Same 2 and 3, but x n and ^n give different answers - proof the position of n changes the math, not just the look.

Answer: C

gaurikhanna17
can someone please explain what is the difference between option B and option C. I selected option B, as i can find no difference between these 2 options (but the placing of n before and after the brackets).
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