GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 16 Feb 2019, 16:00

### 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

## Events & Promotions

###### Events & Promotions in February
PrevNext
SuMoTuWeThFrSa
272829303112
3456789
10111213141516
17181920212223
242526272812
Open Detailed Calendar
• ### Free GMAT Algebra Webinar

February 17, 2019

February 17, 2019

07:00 AM PST

09:00 AM PST

Attend this Free Algebra Webinar and learn how to master Inequalities and Absolute Value problems on GMAT.
• ### Free GMAT Strategy Webinar

February 16, 2019

February 16, 2019

07:00 AM PST

09:00 AM PST

Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.

# John invest \$2,000 at a constant interest rate of annually compound 5%

Author Message
TAGS:

### Hide Tags

Math Revolution GMAT Instructor
Joined: 16 Aug 2015
Posts: 6949
GMAT 1: 760 Q51 V42
GPA: 3.82
John invest \$2,000 at a constant interest rate of annually compound 5%  [#permalink]

### Show Tags

16 Mar 2016, 17:26
00:00

Difficulty:

55% (hard)

Question Stats:

69% (02:14) correct 31% (02:33) wrong based on 83 sessions

### HideShow timer Statistics

John invest \$2,000 at a constant interest rate of annually compound 5%. If the amount from the investment after n years is p, p=(2,000)1.05^n, is n>4?

1) p>2,100
2) p<3,000

* A solution will be posted in two days.

_________________

MathRevolution: Finish GMAT Quant Section with 10 minutes to spare
The one-and-only World’s First Variable Approach for DS and IVY Approach for PS with ease, speed and accuracy.
"Only \$149 for 3 month Online Course"
"Free Resources-30 day online access & Diagnostic Test"
"Unlimited Access to over 120 free video lessons - try it yourself"

SC Moderator
Joined: 13 Apr 2015
Posts: 1687
Location: India
Concentration: Strategy, General Management
GMAT 1: 200 Q1 V1
GPA: 4
WE: Analyst (Retail)
Re: John invest \$2,000 at a constant interest rate of annually compound 5%  [#permalink]

### Show Tags

17 Mar 2016, 06:36
Interest for 1st year = 100. Interest for subsequent years will also be close to 100

St1: p > 2100 --> interest > 100 --> If interest < 450 (approx.) then n < 4 but if interest > 450 then n > 4. Not sufficient

St2: Clearly not sufficient for the above mentioned reason

Combining St1 and St2, we still have 2 possibilities. Hence insufficient.

Math Revolution GMAT Instructor
Joined: 16 Aug 2015
Posts: 6949
GMAT 1: 760 Q51 V42
GPA: 3.82
Re: John invest \$2,000 at a constant interest rate of annually compound 5%  [#permalink]

### Show Tags

19 Mar 2016, 22:02
Forget conventional ways of solving math questions. In DS, Variable approach is the easiest and quickest way to find the answer without actually solving the problem. Remember equal number of variables and independent equations ensures a solution.

John invest \$2,000 at a constant interest rate of annually compound 5%. If the amount from the investment after n years is p, p=(2,000)1.05^n, is n>4?

1) p>2,100
2) p<3,000

In the original condition, there is 1 variable, which should match with the number of equations. For 1) 1 equation, for 2) 1 equation, which is likely to make D the answer.
Howver, 1) 2,000(1.05^4)=2,430 -> no, 2,000(1.05^5)=2,551 -> yes
2) 2,000(1.05^4)=2,430 -> no, 2,000(1.05^5)=2,551 -> yes
1) & 2) 2,000(1.05^4)=2,430 -> no, 2,000(1.05^5)=2,551 -> yes
_________________

MathRevolution: Finish GMAT Quant Section with 10 minutes to spare
The one-and-only World’s First Variable Approach for DS and IVY Approach for PS with ease, speed and accuracy.
"Only \$149 for 3 month Online Course"
"Free Resources-30 day online access & Diagnostic Test"
"Unlimited Access to over 120 free video lessons - try it yourself"

Senior Manager
Joined: 06 Jul 2016
Posts: 366
Location: Singapore
Concentration: Strategy, Finance
Re: John invest \$2,000 at a constant interest rate of annually compound 5%  [#permalink]

### Show Tags

21 Nov 2017, 12:06
MathRevolution wrote:
John invest \$2,000 at a constant interest rate of annually compound 5%. If the amount from the investment after n years is p, p=(2,000)1.05^n, is n>4?

1) p>2,100
2) p<3,000

* A solution will be posted in two days.

S1) p>2,100
=> n > 1
if n = 2
p = 2,200+ approx.

if n = 5
p = 2550+ approx.

Insufficient.

S2) p < 3,000
Same case as statement 1.
Insufficient.

Quote:
combining both statements

We have no new information
=> Insufficient

_________________

Put in the work, and that dream score is yours!

Re: John invest \$2,000 at a constant interest rate of annually compound 5%   [#permalink] 21 Nov 2017, 12:06
Display posts from previous: Sort by