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Jake invested x dollars for a simple annual interest rate of y percent

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Jake invested x dollars for a simple annual interest rate of y percent  [#permalink]

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New post Updated on: 09 Dec 2014, 07:46
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  55% (hard)

Question Stats:

62% (02:04) correct 38% (01:50) wrong based on 176 sessions

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Jake invested x dollars for a simple annual interest rate of y percent, and John invested c dollars for d percent annual interest, compounded semiannually. After 2 years, is the interest received by John is greater than that earned by Jake?

(1) x > c

(2) y > d

My question is - Why not C? As both P and R for Jake are greater than John's should it not be a straight C case? Please help!

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Originally posted by aimtoteach on 09 Dec 2014, 07:44.
Last edited by Bunuel on 09 Dec 2014, 07:46, edited 1 time in total.
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Re: Jake invested x dollars for a simple annual interest rate of y percent  [#permalink]

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New post 09 Dec 2014, 07:54
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aimtoteach wrote:
Jake invested x dollars for a simple annual interest rate of y percent, and John invested c dollars for d percent annual interest, compounded semiannually. After 2 years, is the interest received by John is greater than that earned by Jake?

(1) x > c

(2) y > d

My question is - Why not C? As both P and R for Jake are greater than John's should it not be a straight C case? Please help!


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Re: Jake invested x dollars for a simple annual interest rate of y percent  [#permalink]

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New post 26 Sep 2015, 08:43
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aimtoteach wrote:
My question is - Why not C? As both P and R for Jake are greater than John's should it not be a straight C case? Please help!


Official Explanation:

According to Stat. (1+2),

You have data about the principal and the interest rates of both investments. But, this is still not enough. If x is almost equal to c (e.g. x = $100.1, c = $100) and y is almost equal to d (e.g. y = 5.01%, d = 5%), then John made a better investment because he receives a semiannually compounded interest, which is slightly higher than the same simple interest, whereas Jake receives a simple interest. But, if x is much bigger than c (e.g. x = $100 and c = $1), and y is a lot larger than d (e.g. y = 10%, d = 1%), then it is better to be Jake.

Stat.(1+2)->IS->E.
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Re: Jake invested x dollars for a simple annual interest rate of y percent  [#permalink]

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New post 13 Aug 2018, 23:46
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Re: Jake invested x dollars for a simple annual interest rate of y percent   [#permalink] 13 Aug 2018, 23:46
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