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If C=P(1+r/100)^n where C is the capital, P is t

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If C=P(1+r/100)^n where C is the capital, P is t [#permalink]

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New post 23 Oct 2017, 02:16
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Question Stats:

57% (00:52) correct 43% (00:50) wrong based on 37 sessions

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[GMAT math practice question]

If C=P(1+r/100)^n where C is the capital, P is the principal in 2001, and r is the compound interest rate after n years, by what percent did the capital increase from n years later to n+5 years later?

1) n=5
2) r=5
[Reveal] Spoiler: OA

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Re: If C=P(1+r/100)^n where C is the capital, P is t [#permalink]

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New post 23 Oct 2017, 06:24
We need to figure out % increase after (n+5)-n=5 years.
C=P(1+r/100)^n
C/P=(1+r/100)^5
To calculate % increase we need to find the value of "r"
(1) We don't need to know the value of "n" basing on the above manipulations. Insufficient.
(2) Sufficient.

Answer B.

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Re: If C=P(1+r/100)^n where C is the capital, P is t [#permalink]

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New post 25 Oct 2017, 02:17
=>

Forget conventional ways of solving math questions. In DS, VA (Variable Approach) method is the easiest and quickest way to find the answer without actually solving the problem. Remember that equal number of variables and independent equations ensures a solution.

The first step of VA(Variable Approach) method is modifying the original condition and the question, and rechecking the number of variables and the number of equations.

The questions ask what the value of { P(1+r/100)^{n+5} } / { P(1+r/100)^n } is. However, { P(1+r/100)^{n+5} } / { P(1+r/100)^n } = (1+r/100)^5. It depends on r only.

Only condition 2) is sufficient.
Therefore, the answer is B.
Ans: B
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Re: If C=P(1+r/100)^n where C is the capital, P is t   [#permalink] 25 Oct 2017, 02:17
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