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

It is currently 02 Jun 2020, 10:57

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Last year a certain bond with a face value of $5,000 yielded 8 percent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Find Similar Topics 
Intern
Intern
avatar
Joined: 27 Dec 2011
Posts: 5
GMAT ToolKit User
Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 11 Apr 2012, 01:38
5
31
00:00
A
B
C
D
E

Difficulty:

  15% (low)

Question Stats:

81% (02:01) correct 19% (02:01) wrong based on 497 sessions

HideShow timer Statistics

Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
Most Helpful Expert Reply
Magoosh GMAT Instructor
User avatar
G
Joined: 28 Dec 2011
Posts: 4485
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 11 Nov 2013, 10:19
16
6
sapna44 wrote:
Last year a certain bond price with a face value of 5000 yielded 8% of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price?
A. 4063
B. 5325
C. 5351
D. 6000
E. 6154

ronr34 wrote:
Hi Mike,
I found this question and I tried to approximate....
What I did was approximate the selling price as 6 instead of 6.5 and got something along the lines of 6666.
Luckily I chose the answer that was closes to it, but if I had approximated to 7 instead, I may have gotten stuck
between answers D and E.... Can you help with this?

Dear ronr34,
I'm happy to help. :-)

Remember, one criterion for approximation is that the answer choices be far apart and well-spaced. Here, the answers are not particularly far apart, so we are much more restricted in the kinds of approximating we can do. Here's how I would think about it.

First of all, 8% of $5000 is $400. For this part, it should be easy to calculate the exact value.

Now, 6.5% of the selling price is $400.
Let x = selling price
0.065*x = 400
To be honest, the answers are close enough together that I don't want to approximate 6.5 to either 6 or 7. Here's what I am going to do. First, I will multiply both sides by 100.
6.5*x = 40,000
Now, here is think is the big key to solving this problem easily --- change the decimal 6.5 to the fraction 13/2. In 90% of all cases, fractions are MUCH MUCH EASIER for calculation than are decimals!!
(13/2)*x = 40,000
13*x = 80,000

x = 80,000/13

Well, 13*6 = 78, so 13 goes into 80 six times, with a remainder of 2. That means, x is more than 6000. That's enough to isolate (E).

A totally different strategy --- backsolving. Once we know 6.5% of x is $400, plug in answer choices to see where we are. Normally, I would recommend starting with (C) --- see:
http://magoosh.com/gmat/2012/gmat-plugg ... -choice-c/
Here, though, many of the answers are warthog-ugly numbers, but the question is handing us answer (D) on a golden platter as an ideal candidate for backsolving. (Incidentally, that's a very handy trick to have up your sleeve --- four ugly number answer choices, and one nice round number: chances are extremely good that backsolving with that one nice round number will help you find the answer quickly.)

What's 6.5% of $6000?

Well, 1% of $6000 is $60.
Six times that means: 6% of $6000 is $360.
Now, divide the 1% line in half --- 0.5% of $6000 is $30.
Now, add the last two lines --- 6.5% of $6000 is $390.

Thus, if x = 6000, then 6.5% of it is not big enough. We need something bigger than $6000, and the only choice is (E).

Does all this make sense?
Mike :-)





Does all this make sense?
Mike :-)
_________________
Mike McGarry
Magoosh Test Prep


Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
General Discussion
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 64174
Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 11 Apr 2012, 02:01
3
3
sapna44 wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154


Interest = 0.08*5000 = 0.065*selling price --> selling price = 0.08*5000/0.065 --> selling price = ~6,154

Answer: E.
_________________
Manager
Manager
avatar
Joined: 26 Feb 2013
Posts: 145
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 30 Aug 2013, 10:09
1
Bunuel wrote:
sapna44 wrote:
Last year a certain bond price with a face value of 5000 yielded 8 % of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price ?

A. 4063
B. 5325
C. 5351
D. 6000
E. 6154


Interest = 0.08*5000 = 0.065*selling price --> selling price = 0.08*5000/0.065 --> selling price = ~6,154

Answer: E.


I got confused with the wording "bond's selling price" :evil:
I started wondering "Who sold it? Do we need to find how much it was bought? What quantity?" :oops:

It could just ask "What's 6.5 % of the interest earned?".
I hate when I get stuck in these kind of things in quant and end up wasting my time in one simple question!
Senior Manager
Senior Manager
avatar
Joined: 07 Apr 2012
Posts: 314
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 11 Nov 2013, 12:20
mikemcgarry wrote:
sapna44 wrote:
Last year a certain bond price with a face value of 5000 yielded 8% of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price?
A. 4063
B. 5325
C. 5351
D. 6000
E. 6154

ronr34 wrote:
Hi Mike,
I found this question and I tried to approximate....
What I did was approximate the selling price as 6 instead of 6.5 and got something along the lines of 6666.
Luckily I chose the answer that was closes to it, but if I had approximated to 7 instead, I may have gotten stuck
between answers D and E.... Can you help with this?

Dear ronr34,
I'm happy to help. :-)

Remember, one criterion for approximation is that the answer choices be far apart and well-spaced. Here, the answers are not particularly far apart, so we are much more restricted in the kinds of approximating we can do. Here's how I would think about it.

First of all, 8% of $5000 is $400. For this part, it should be easy to calculate the exact value.

Now, 6.5% of the selling price is $400.
Let x = selling price
0.065*x = 400
To be honest, the answers are close enough together that I don't want to approximate 6.5 to either 6 or 7. Here's what I am going to do. First, I will multiply both sides by 100.
6.5*x = 40,000
Now, here is think is the big key to solving this problem easily --- change the decimal 6.5 to the fraction 13/2. In 90% of all cases, fractions are MUCH MUCH EASIER for calculation than are decimals!!
(13/2)*x = 40,000
13*x = 80,000

x = 80,000/13

Well, 13*6 = 78, so 13 goes into 80 six times, with a remainder of 2. That means, x is more than 6000. That's enough to isolate (E).

A totally different strategy --- backsolving. Once we know 6.5% of x is $400, plug in answer choices to see where we are. Normally, I would recommend starting with (C) --- see:
http://magoosh.com/gmat/2012/gmat-plugg ... -choice-c/
Here, though, many of the answers are warthog-ugly numbers, but the question is handing us answer (D) on a golden platter as an ideal candidate for backsolving. (Incidentally, that's a very handy trick to have up your sleeve --- four ugly number answer choices, and one nice round number: chances are extremely good that backsolving with that one nice round number will help you find the answer quickly.)

What's 6.5% of $6000?

Well, 1% of $6000 is $60.
Six times that means: 6% of $6000 is $360.
Now, divide the 1% line in half --- 0.5% of $6000 is $30.
Now, add the last two lines --- 6.5% of $6000 is $390.

Thus, if x = 6000, then 6.5% of it is not big enough. We need something bigger than $6000, and the only choice is (E).

Does all this make sense?
Mike :-)





Does all this make sense?
Mike :-)


Thanks Mike!!!!
Great answer, I hope I still have enough time to try and work
it into my toolbox.... :)
Current Student
User avatar
B
Joined: 10 Mar 2013
Posts: 449
Location: Germany
Concentration: Finance, Entrepreneurship
Schools: WHU MBA"20 (A$)
GMAT 1: 580 Q46 V24
GPA: 3.88
WE: Information Technology (Consulting)
GMAT ToolKit User
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 29 Dec 2015, 11:56
2
sapna44 wrote:
Last year a certain bond price with a face value of 5000 yielded 8% of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price?

A. 4063
B. 5325
C. 5351
D. 6000
E. 6154


8% from 5000=400 ->\(400=\frac{6,5}{100}*S\) (Selling price) = \(\frac{400*20}{1.3}\), here we can estimate... \(\frac{40}{13}\)~3, so \(400/1.3\) ~ 3000 (actually more) 3000*2=6000 we need an answer choice which is slightly more than 6000, hence Answer E
Intern
Intern
User avatar
Joined: 16 Jul 2015
Posts: 33
GMAT 1: 580 Q37 V33
GMAT 2: 580 Q39 V31
GMAT 3: 560 Q40 V28
GMAT 4: 580 Q37 V32
GMAT 5: 680 Q45 V37
GMAT 6: 690 Q47 V37
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 05 Mar 2016, 05:18
I have a query.It says approx 6.5 of the bond's selling price ,but above 6.5% has been considered.Why is that?can anybody explain.
Magoosh GMAT Instructor
User avatar
G
Joined: 28 Dec 2011
Posts: 4485
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 06 Mar 2016, 10:49
1
bhamini1 wrote:
I have a query.It says approx 6.5 of the bond's selling price ,but above 6.5% has been considered.Why is that?can anybody explain.

Dear bhamini1,
I'm happy to respond. :-) My friend, the person who posted the question made a mistake. Whoever posted the question omitted the word "percent" after the 6.5. About 90% of the questions posted on GMAT Club are posted by students, and students don't always do a perfect job of posting a question.

My friend, one of the most important skills to have, on the GMAT and in the business world, is critical thinking. See this blog article:
Doing GMAT Critical Reasoning
You cannot simply believe everything is mistake-free and meant to be trusted as is. If you interpret everything literally as if the world is a perfect place, then unscrupulous people in the business world will cheat you out of everything. You have to be cunningly clever to succeed on the GMAT and in the business world.

My friend, I want to support your success in every way I can. Does all this make sense?
Mike :-)
_________________
Mike McGarry
Magoosh Test Prep


Education is not the filling of a pail, but the lighting of a fire. — William Butler Yeats (1865 – 1939)
Target Test Prep Representative
User avatar
V
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 10645
Location: United States (CA)
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 05 Dec 2017, 18:41
2
sapna44 wrote:
Last year a certain bond price with a face value of 5000 yielded 8% of its face value in interest. If that interest was approx 6.5 of the bond's selling price approx what was the bond's selling price?

A. 4063
B. 5325
C. 5351
D. 6000
E. 6154


We are given that a certain bond with a face value of $5,000 yielded 8% of its face value in interest. Thus, we can determine the interest as follows:

5,000 x 0.08 = 400

We also know that the $400 of interest was approximately 6.5% of the bond's selling price. Thus, we can create the following equation, where p = the bond’s selling price:

400 = 0.065 x p

400/0.065 = p

400,000/65 = p

6,154 ≈ p

Answer: E
_________________

Scott Woodbury-Stewart

Founder and CEO

Scott@TargetTestPrep.com
TTP - Target Test Prep Logo
202 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.

Director
Director
User avatar
V
Joined: 04 Dec 2015
Posts: 725
Location: India
Concentration: Technology, Strategy
WE: Information Technology (Consulting)
GMAT ToolKit User
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 15 Dec 2018, 08:53
sapna44 wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154


Interest \(= \frac{8*5000}{100} = 400\)

Given Interest is \(6.5\) percent of the bond's selling price.

\(400 =\frac{6.5}{100} * SP\)

\(SP = \frac{400 * 100}{6.5} =\sim 6,154\)

Answer E
GMAT Club Legend
GMAT Club Legend
User avatar
V
Joined: 11 Sep 2015
Posts: 4886
Location: Canada
GMAT 1: 770 Q49 V46
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 25 Mar 2019, 05:46
1
Top Contributor
sapna44 wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154


Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest
8% of $5,000 = $400
So, interest = $400

If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
Let x = the bond's selling price
So, $400 = 6.5% of x
In other words: $400 = 0.065x
Solve: x = 400/0.065 ≈ 6154

Answer: E

Cheers,
Brent
_________________
Test confidently with gmatprepnow.com
Image
GMAT Club Legend
GMAT Club Legend
User avatar
V
Joined: 18 Aug 2017
Posts: 6305
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
GMAT ToolKit User Reviews Badge CAT Tests
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 25 Mar 2019, 07:53
sapna44 wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154


5000*8/100= 6.5/100 * SP
SP= 6154
IMO E
VP
VP
User avatar
V
Joined: 11 Feb 2015
Posts: 1142
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent  [#permalink]

Show Tags

New post 25 Mar 2019, 08:30
sapna44 wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?

A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154


face value of $5,000 yielded 8 percent of its face value in interest = $400 (interest)

Selling price = (400 * 100)/6.5 (which equals approx more than 6000) Since only one option E is a possibility;that's the correct answer
_________________
Non-Human User
User avatar
Joined: 09 Sep 2013
Posts: 15039
Re: 1) For every positive even integer n, function h(n) is  [#permalink]

Show Tags

New post 23 Jul 2019, 03:50
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
GMAT Club Bot
Re: 1) For every positive even integer n, function h(n) is   [#permalink] 23 Jul 2019, 03:50

Last year a certain bond with a face value of $5,000 yielded 8 percent

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  





Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne