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# Kevin deposited x hundred dollars in a bank that pays Y percent annual

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Joined: 29 Apr 2015
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Concentration: Economics, Finance
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Kevin deposited x hundred dollars in a bank that pays Y percent annual [#permalink]

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24 May 2015, 06:30
2
4
00:00

Difficulty:

35% (medium)

Question Stats:

70% (01:04) correct 30% (01:25) wrong based on 152 sessions

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Kevin deposited x hundred dollars in a bank that pays Y percent annual interest, where Y is a single-digit positive integer, compounded semi-annually. How much money will Kevin have in his account after one year?

A. $$100x*[1+\frac{(0.0Y)}{2}]^2$$
B. $$x*[1+Y]^2$$
C. $$2*[x+0.Y]^2$$
D. $$x*[1+0.Y]^2$$
E. $$x*[1+0.0Y]^2$$

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Joined: 24 Jun 2008
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Re: Kevin deposited x hundred dollars in a bank that pays Y percent annual [#permalink]

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24 May 2015, 08:52
1
If you compound twice a year, you need to divide your annual interest rate by 2, and knowing that one thing alone lets you see that A is the right answer here.

But the math in this question is not proper math. The question tells us that Y represents some unknown value. They then write "0.0Y" in the answer choices, where we're meant to assume Y instead represents an unknown digit. It would be perfectly reasonable (correct, in fact) to assume 0.0Y means a product of 0.0 and Y. I say that interpretation is correct because if you read a question that says "k is a single digit integer between 0 and 9, and 2k > 17", then k absolutely does not represent an unknown units digit in the number '2k'. It represents an unknown value- the inequality tells us that 2 times k is greater than 17.
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Joined: 18 Aug 2006
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Re: Kevin deposited x hundred dollars in a bank that pays Y percent annual [#permalink]

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22 Aug 2015, 14:49
Only A deals with X 100 hundred dollars
Manager
Joined: 08 Sep 2010
Posts: 67
Re: Kevin deposited x hundred dollars in a bank that pays Y percent annual [#permalink]

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11 Oct 2015, 08:11
anilisanil wrote:
Only A deals with X 100 hundred dollars

Don't think this is a GMAT type question. The answer is just the representation of compounded interest formulae, where we need to add inputs given in the question stem.

Thanks,
Chanakya
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Joined: 21 Jul 2017
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Re: Kevin deposited x hundred dollars in a bank that pays Y percent annual [#permalink]

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18 Sep 2017, 10:58
For semi annually the time doubles and rate becomes half.
Re: Kevin deposited x hundred dollars in a bank that pays Y percent annual   [#permalink] 18 Sep 2017, 10:58
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