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Difficulty:   95% (hard)

Question Stats: 16% (02:16) correct 84% (02:17) wrong based on 68 sessions

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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 two-year period is 210$.
b) $$(1+\frac{x}{100})^n >1.14$$

Only the TEXT Solution is Allowed

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Retired Moderator V
Joined: 27 Oct 2017
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Re: If John deposited 1000$in a certain bank account, where the interest [#permalink] ### Show Tags 2 Official Solution: Statement1: The interest earned in a two-year period is 210$.
Since we don't know whether the interest earned is in first 2-year period or 10-12 year period or so, nothing can be said about the rate of interest.
NOT SUFFICIENT
Statement 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 SUFFICIENT
Even after combining statement 1 & 2, we can not say anything about rate of interest.
NOT SUFFICIENT

gmatbusters 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 two-year period is 210$.
b) $$(1+\frac{x}{100})^n >1.14$$

Only the TEXT Solution is Allowed

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##### General Discussion
Senior Manager  D
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Concentration: General Management, Technology
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2
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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Senior PS Moderator D
Status: It always seems impossible until it's done.
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GMAT 1: 740 Q50 V40 GMAT 2: 770 Q51 V42 ### Show Tags

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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Director  P
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from 1 st equation 210/1000=[(1+x%)^2-1]

solving we get
x^2+200x-2100=0

Solving we get,
x=10,-210

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

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Intern  B
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Re: If John deposited 1000$in a certain bank account, where the interest [#permalink] ### Show Tags Ans A Principal = 1000 210 = 1000((1+(x/100)raised to power n) -1) Here n=2 Thus, upon solving, We get, 121 = 100(1 + (x/100))raises to power 2 Taking square root on both sides, we get 11 = 10+ (x/10) Thus, x =10. Solving for n =1, we get x >14, so yes For n =2, 1+(x/100) > 1.5 X>50 so yes. So ans is D , both are sufficient Posted from my mobile device Re: If John deposited 1000$ in a certain bank account, where the interest   [#permalink] 29 Sep 2018, 12:47
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# If John deposited 1000\$ in a certain bank account, where the interest  