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# If $1000 is deposited in a certain bank account and remains  post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message VP Joined: 22 Nov 2007 Posts: 1079 If$1000 is deposited in a certain bank account and remains [#permalink]

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07 Mar 2008, 12:47
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If $1000 is deposited in a certain bank account and remains in the account along with any accumulated interest, the dollar amount of interest I earned by the deposit in the first n years is given by the formula I= 1000[(1+r/100)^n -1] where r is the annual rate of interest paid by the bank. Is the annual interest rate paid by the bank is greater than 8 % ? (1) The deposit earns a total of$210 in interest in the first two years.
(2) (1+r/100)2 > 1.15

Last edited by marcodonzelli on 08 Mar 2008, 10:29, edited 1 time in total.
Senior Manager
Joined: 15 Aug 2007
Posts: 252
Schools: Chicago Booth
Re: interest [#permalink]

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07 Mar 2008, 13:00
A

1 - suff. didn't do the math. But given n, can figure out r.
2 - insuff. I took 8% and the value on left hand side came to 1.1664 which is great than 1.15. So can't say if it is 8% or great than 8%.
SVP
Joined: 28 Dec 2005
Posts: 1558
Re: interest [#permalink]

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07 Mar 2008, 13:13
A as well.

from stat 1, we can figure out r.

from stat 2, numbers bigger than 7 work .... but they dont have to be bigger than 8. insuff.

by the way, does anyone have a quick method for stat 2 to check various numbers ?
VP
Joined: 22 Nov 2007
Posts: 1079
Re: interest [#permalink]

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08 Mar 2008, 10:38
pmenon wrote:
A as well.

from stat 1, we can figure out r.

from stat 2, numbers bigger than 7 work .... but they dont have to be bigger than 8. insuff.

by the way, does anyone have a quick method for stat 2 to check various numbers ?

yes, please. I still can't get condition 2. thanks a lot
Re: interest   [#permalink] 08 Mar 2008, 10:38
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# If \$1000 is deposited in a certain bank account and remains

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