GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video

 It is currently 22 Jan 2020, 13:51

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Jane's investment of \$200 increased by 200% in 7 years when compounded

Author Message
TAGS:

### Hide Tags

e-GMAT Representative
Joined: 04 Jan 2015
Posts: 3219
Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

27 Apr 2017, 23:24
1
9
00:00

Difficulty:

85% (hard)

Question Stats:

54% (02:15) correct 46% (02:47) wrong based on 112 sessions

### HideShow timer Statistics

Jane's investment of \$200 increased by 200% in 7 years when compounded annually. If she wants to earn an additional compound interest of \$4800, for how many more years should she keep her money invested?

A. 7 years
B. 14 years
C. 21 years
D. 24 years
E. 30 years

Thanks,
Saquib
Quant Expert
e-GMAT

Register for our Free Session on Number Properties (held every 3rd week) to solve exciting 700+ Level Questions in a classroom environment under the real-time guidance of our Experts

_________________
Current Student
Joined: 12 Aug 2015
Posts: 2549
Schools: Boston U '20 (M)
GRE 1: Q169 V154
Re: Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

28 Apr 2017, 01:07
6
1
Nice one.
Here is what i did ==>

In 7 years => 200 becomes => 600

So the value becomes thrice of itself in every 7 years.

200-------600------1800------5400------

After 7 years->For an additional \$4800 => Value must be 600+4800=> \$5400

Hence she must wait an additional 14 years.

Smash that B.

_________________
##### General Discussion
Intern
Status: Target 760
Joined: 20 Aug 2014
Posts: 48
Location: India
Concentration: Strategy, Economics
GMAT 1: 730 Q49 V40
GPA: 3.6
WE: Corporate Finance (Commercial Banking)
Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

16 Oct 2017, 11:31
4
EgmatQuantExpert wrote:
Jane's investment of \$200 increased by 200% in 7 years when compounded annually. If she wants to earn an additional compound interest of \$4800, for how many more years should she keep her money invested?

A. 7 years
B. 14 years
C. 21 years
D. 24 years
E. 30 years

Thanks,
Saquib
Quant Expert
e-GMAT

Register for our Free Session on Number Properties (held every 3rd week) to solve exciting 700+ Level Questions in a classroom environment under the real-time guidance of our Experts

in every 7 years, the value rises by 200%. Now, with the investment of 200, if one needs to have 200% profits, the value will be 600.
The gain of 4800 above this would be 600. In another 7 years, 600 will be 1800 with gain of 1200 and in another 7 years, it shall be 5400 with gain of 4800.
Boom!!

Always remember, GMAT do not want to test your understanding on math, but your analytical skills. They do not want us to remember complex formulas so a little common sense should suffice.

BTW, B is the answr.
e-GMAT Representative
Joined: 04 Jan 2015
Posts: 3219
Re: Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

27 Apr 2017, 23:24
Manager
Joined: 19 Aug 2016
Posts: 72
Re: Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

04 Oct 2017, 18:54
stonecold wrote:
Nice one.
Here is what i did ==>

In 7 years => 200 becomes => 600

So the value becomes thrice of itself in every 7 years.

200-------600------1800------5400------

After 7 years->For an additional \$4800 => Value must be 600+4800=> \$5400

Hence she must wait an additional 14 years.

Smash that B.

Im not sure how u got 600 because 200 increased by 200% in 7 years when compounded annually will be much higher...

Could u pls explain?

I don't know if I have understood it right..

Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 9095
Location: United States (CA)
Re: Jane's investment of \$200 increased by 200% in 7 years when compounded  [#permalink]

### Show Tags

24 Nov 2019, 18:43
EgmatQuantExpert wrote:
Jane's investment of \$200 increased by 200% in 7 years when compounded annually. If she wants to earn an additional compound interest of \$4800, for how many more years should she keep her money invested?

A. 7 years
B. 14 years
C. 21 years
D. 24 years
E. 30 years

We see that the original investment actually triples from \$200 to \$600 in 7 years . So it will triple again in another 7 years, from \$600 to \$1800. It will again triple in 7 more years, from \$1800 to \$5400. At this point, we see that the earning in additional interest is exactly 5400 - 600 = \$4800. Therefore, it takes 7 + 7 = 14 additional years to earn \$4800 after the investment accumulated to \$600.

_________________

# Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
181 Reviews

5-star rated online GMAT quant
self study course

See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews

If you find one of my posts helpful, please take a moment to click on the "Kudos" button.

Re: Jane's investment of \$200 increased by 200% in 7 years when compounded   [#permalink] 24 Nov 2019, 18:43
Display posts from previous: Sort by