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# If a newlywed couple invested \$20,000 at 8% annual interest, what was

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Math Expert
Joined: 02 Sep 2009
Posts: 55274
If a newlywed couple invested \$20,000 at 8% annual interest, what was  [#permalink]

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26 Apr 2017, 08:23
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Difficulty:

5% (low)

Question Stats:

89% (00:51) correct 11% (01:02) wrong based on 64 sessions

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If a newlywed couple invested \$20,000 at 8% annual interest, what was the total value of the investment after 6 months?

A. \$21,600
B. \$20,800
C. \$16,000
D. \$10,800
E. \$1,600

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Senior Manager
Joined: 24 Apr 2016
Posts: 331
Re: If a newlywed couple invested \$20,000 at 8% annual interest, what was  [#permalink]

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26 Apr 2017, 11:05
A = P(1+RT/100)
A = 20000(1+8/200)
= 20000*208/200
= 100*208
= 20800

Manager
Joined: 21 Jul 2017
Posts: 190
Location: India
GMAT 1: 660 Q47 V34
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WE: Project Management (Education)
Re: If a newlywed couple invested \$20,000 at 8% annual interest, what was  [#permalink]

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07 Aug 2017, 02:01
1
Bunuel wrote:
If a newlywed couple invested \$20,000 at 8% annual interest, what was the total value of the investment after 6 months?

A. \$21,600
B. \$20,800
C. \$16,000
D. \$10,800
E. \$1,600

Simple Interest=P*R*T/100
Here P= \$20,000, R=8% pa, and time T is 1/2 years

So, S.I= \$800
hence, Amount=P+S.I= \$ 20,800
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Re: If a newlywed couple invested \$20,000 at 8% annual interest, what was  [#permalink]

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10 Aug 2017, 10:40
1
Bunuel wrote:
If a newlywed couple invested \$20,000 at 8% annual interest, what was the total value of the investment after 6 months?

A. \$21,600
B. \$20,800
C. \$16,000
D. \$10,800
E. \$1,600

We can use the simple interest formula to determine the total amount of interest earned in 6 months:

20,000 x 0.08 x 1/2 = 800 dollars

The total value of the investment after 6 months is 20,800 dollars.

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Re: If a newlywed couple invested \$20,000 at 8% annual interest, what was   [#permalink] 10 Aug 2017, 10:40
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