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# If money is invested at x percent interest, compounded annually, the

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If money is invested at x percent interest, compounded annually, the  [#permalink]

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Updated on: 09 Mar 2019, 02:28
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Difficulty:

35% (medium)

Question Stats:

62% (01:36) correct 38% (01:25) wrong based on 21 sessions

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If money is invested at x percent interest, compounded annually, the amount of the investment will double in approximately 72/x years. If Jolene invested $10,000 in a long-term bond that pays 6 percent interest, compounded annually, what will be the approximate total amount of the investment 35 years later? (A)$20,000
(B) $40,000 (C)$60,000
(D) $80,000 (E)$120,000

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Originally posted by Noshad on 09 Mar 2019, 00:44.
Last edited by Noshad on 09 Mar 2019, 02:28, edited 2 times in total.
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Re: If money is invested at x percent interest, compounded annually, the  [#permalink]

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09 Mar 2019, 02:12
If money is invested at x percent interest, compounded annually, the amount of the investment will double in approximately 72/7 years. If Jolene invested $10,000 in a long-term bond that pays 6 percent interest, compounded annually, what will be the approximate total amount of the investment 35 years later? (A)$20,000
(B) $40,000 (C)$60,000
(D) $80,000 (E)$120,000

I think - the problem should read "If money is invested at x percent interest, compounded annually,
the amount of the investment will double in approximately 72/x"

The solution will be as follows:

At x=6%, the amount will double in $$\frac{72}{6} = 12$$ years.

In 35 years, there are three 12 year terms. The cost of an investment will double 3 times.

Therefore, the total amount of the long bond will be 2*2*2*$10000 =$80000(Option D) in 35 years.
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If money is invested at x percent interest, compounded annually, the  [#permalink]

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09 Mar 2019, 02:30
pushpitkc
Edited
I made a typing mistake
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If money is invested at x percent interest, compounded annually, the  [#permalink]

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09 Mar 2019, 05:44
If money is invested at x percent interest, compounded annually, the amount of the investment will double in approximately 72/x years. If Jolene invested $10,000 in a long-term bond that pays 6 percent interest, compounded annually, what will be the approximate total amount of the investment 35 years later? (A)$20,000
(B) $40,000 (C)$60,000
(D) $80,000 (E)$120,000

Investment doubles in approximately $$= \frac{72}{x}$$ years --------- ($$x =$$ rate of interest)

Invested amount $$= 10,000$$

Rate of interest $$= 6$$%

Time $$= 35$$ years

Therefore; Investment doubles in approximately $$= \frac{72}{6} = 12$$ years

$$12*3 = 36$$ years.

Therefore investment doubles approximately $$3$$ times in $$35$$ years.

ie; $$2*2*2*10,000 =  80,000$$

If money is invested at x percent interest, compounded annually, the   [#permalink] 09 Mar 2019, 05:44
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