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# Kevin invested $8500 for one year at a simple annual interest rate of  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics Author Message Manager Status: Math Tutor Joined: 12 Aug 2017 Posts: 69 Kudos [?]: 26 [1], given: 13 WE: Education (Education) Kevin invested$8500 for one year at a simple annual interest rate of [#permalink]

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20 Aug 2017, 12:42
1
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Difficulty:

45% (medium)

Question Stats:

67% (01:22) correct 33% (02:30) wrong based on 12 sessions

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Kevin invested $8500 for one year at a simple annual interest rate of 5 percent and invested$ 12000 for one year at an annual interest rate of 8.5 percent compounded semiannually. What is the total amount of interest that Kevin eared on the two investments?

A. $1,020 B.$1,088
C. $1,353.95 D.$1,445.95
E. $1,467.95 [Reveal] Spoiler: OA _________________ Abhishek Parikh Math Tutor Whatsapp- +919983944321 Mobile- +971529685639 Website: http://www.holamaven.com Last edited by HolaMaven on 20 Aug 2017, 22:29, edited 1 time in total. Kudos [?]: 26 [1], given: 13 Manager Status: Math Tutor Joined: 12 Aug 2017 Posts: 69 Kudos [?]: 26 [0], given: 13 WE: Education (Education) Re: Kevin invested$8500 for one year at a simple annual interest rate of [#permalink]

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20 Aug 2017, 12:52
You can avoid calculation of compounded interest here.

$8,500 for one year at a simple annual interest rate of 5 percent = 10% *8500= 850 so 5% = $$\frac{850}{2}$$ = 425 Now$12,000 were invested for one year at a simple annual interest rate of 8.5 percent, then it would earn 8%*12000+0.5%*12000 = 960+60=$1020 This total is coming as 425+1020 = 1445. Thus answer has to be greater than 1445. Only Option E _________________ Abhishek Parikh Math Tutor Whatsapp- +919983944321 Mobile- +971529685639 Website: http://www.holamaven.com Kudos [?]: 26 [0], given: 13 BSchool Forum Moderator Joined: 26 Feb 2016 Posts: 1336 Kudos [?]: 524 [0], given: 16 Location: India Concentration: General Management, Leadership WE: Sales (Retail) Re: Kevin invested$8500 for one year at a simple annual interest rate of [#permalink]

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20 Aug 2017, 13:31
Hi HolaMaven,

This question has already been discussed here:
https://gmatclub.com/forum/kevin-invest ... fl=similar

_________________

Stay hungry, Stay foolish

Kudos [?]: 524 [0], given: 16