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In 2001, John invests x dollars in a special account that yields y%
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28 Jul 2017, 08:50
1
7
00:00
A
B
C
D
E
Difficulty:
65% (hard)
Question Stats:
59% (01:54) correct 41% (02:55) wrong based on 134 sessions
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In 2001, John invests x dollars in a special account that yields y% simple interest annually. If he has $250 in his account in 2006 and in 2008 he has $270 in his account, what is x + y?
Re: In 2001, John invests x dollars in a special account that yields y%
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28 Jul 2017, 11:22
2
The interest accrued over 2 years is 20$ which is 10$ per year Since this amount x had been invested for 7 years, the total interest is 70$
Total = Interest + Principal(x) Principal(x) = Total - Interest = 270 - 70 = 200 Since 10 is 5% of 200 , y=5 Therefore the amount was invested at an annual rate of 5%(which is y) and amount invested(x) = 200
Sum of x and y = 200 + 5 = 205(Option D)
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Re: In 2001, John invests x dollars in a special account that yields y%
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21 Aug 2017, 09:41
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1
Bunuel wrote:
In 2001, John invests x dollars in a special account that yields y% simple interest annually. If he has $250 in his account in 2006 and in 2008 he has $270 in his account, what is x + y?
(A) 5
(B) 25
(C) 200
(D) 205
(E) 210
With simple interest, the annual interest accrued is the SAME each year
We're told that in 2 years (from 2006 to 2008), the investment increases by $20 (from $250 to $270) So, EACH YEAR, the investment increases by $10 There are 7 years from 2001 (the year of John's initial investment of x dollars) to 2008 (when John's investment reaches $270) In those 7 years, John's ANNUAL interest is $10. So, the TOTAL interest accrued in 7 years = (7)($10) = $70
So, in 2001, John's initial investment = $270 - $70 = $200 So, x = 200
We now know that: John's initial investment = $200. The ANNUAL interest is $10. 10/200 = 5/100 = 5% So, the annual interest RATE = 5%. In other words, y = 5
So, x + y = 200 + 5 = 205
Answer: D
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Re: In 2001, John invests x dollars in a special account that yields y%
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07 Feb 2018, 13:13
one quick approach (might not work always)
given amount increased by 20$ from 250 (2006) to 270 (2008) so 2xy/100 = 20 => xy = 1000 quickly scanning through choice and pick x = 200, y = 5 , option D fits well
gmatclubot
Re: In 2001, John invests x dollars in a special account that yields y% &nbs
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07 Feb 2018, 13:13
close
59% (01:54) correct 
