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If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:37
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Weekly Quant Quiz Question 8 If John deposited 1000$ in a certain bank account, where the interest earned in a year is given by Interest = Principal deposited \([(1+\frac{x}{100})^n 1]\), where x is annual interest paid by the bank. Is the annual interest greater than 7%? a) The interest earned in a twoyear period is 210$. b) \((1+\frac{x}{100})^n >1.14\) Only the TEXT Solution is Allowed
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 22:12
Official Solution: Statement1: The interest earned in a twoyear period is 210$. Since we don't know whether the interest earned is in first 2year period or 1012 year period or so, nothing can be said about the rate of interest. NOT SUFFICIENTStatement 2: \((1+\frac{x}{100})^n >1.14\) Since value of n is not given, we can not say anything about rate of interest. NOT SUFFICIENTEven after combining statement 1 & 2, we can not say anything about rate of interest. NOT SUFFICIENTAnswer Egmatbusters wrote: Weekly Quant Quiz Question 8 If John deposited 1000$ in a certain bank account, where the interest earned in a year is given by Interest = Principal deposited \([(1+\frac{x}{100})^n 1]\), where x is annual interest paid by the bank. Is the annual interest greater than 7%? a) The interest earned in a twoyear period is 210$. b) \((1+\frac{x}{100})^n >1.14\) Only the TEXT Solution is Allowed
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:44
Answer is A As per first statement for a period of 2 year interest is 210....With 7% interest Interest will be arounf 140...hence 210 is much higher hence A is SUFFICIENT As per second statement b) (1+/100)^n>1.14 we have no clue about number of years or interst rate...if it is 1 year then yes if it is 2 years or more than no...Hence INSUFFICIENT
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:46
Solving for equation 1 we have rate as 10, statement 1 is therefore sufficient, statement isn't sufficient since values of x and n can be varied to satisfy tje equation
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:47
St a) 210 = 1000*((1+x/100)^2 1) On simplifying a bit... divide by 1000 and take 1 to LHS... 1.21 = (1+x/100)^2 1.21 = (1+x%)^2 1.21 = 1 + 2x + x^2 ( we can ignore x^2 as it will be a negligible amount) 1.21 = 1 + 2x x = 10.5% St a) is sufficient. St b) From above simplification  1.14 < 1+2x x > 7% Hence St b) is also sufficient. hence Option (D) is correct. Thanks, Gladi
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:48
E. 1) NS ....... no info about n.... the time frame of compounding 2) NS ....... no info about n.... the time frame of compounding
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Re: If John deposited 1000$ in a certain bank account, where the interest
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Updated on: 29 Sep 2018, 21:50
Statement I: P[\((1+x/100)^2−1]\)= 210 P = 1000 x = 10. Hence, Sufficeient. Statement II [\((1+x/100)^n]\) > 1.14 Here, X can be 7 or greater than 7 for n>= 2.
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 10:51
from 1 st equation 210/1000=[(1+x%)^21] solving we get x^2+200x2100=0 Solving we get, x=10,210 answer is 10 therefore sufficient solving for second prompt given (1+x/100)^n>1.14 solving we get nx/100=14/100 nx=14 therefore n=2,7 x=7,2 not sufficient Answer=A
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Re: If John deposited 1000$ in a certain bank account, where the interest
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29 Sep 2018, 12:47
Ans A
Principal = 1000
210 = 1000((1+(x/100)raised to power n) 1)
Here n=2
Thus, upon solving,
We get,
121 = 100(1 + (x/100))raises to power 2
Taking square root on both sides, we get
11 = 10+ (x/10)
Thus, x =10.
Solving for n =1, we get x >14, so yes
For n =2, 1+(x/100) > 1.5
X>50 so yes.
So ans is D , both are sufficient
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Re: If John deposited 1000$ in a certain bank account, where the interest
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