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If \$1000 is deposited in a certain bank account and remains

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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.

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Senior Manager
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Schools: Chicago Booth

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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%.

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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 ?

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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

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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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