A certain amount was deposited at bank A at a rate of \(x\) percent compounded annually and half that amount was deposited at bank B at a rate of \(y\) percent compounded annually. In three years, will the total interest on the deposit in bank A be larger than the total interest on the deposit in bank B?


(1) y = 0.8x

(2) The difference between the amounts initially deposited was $100
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Hi Bunuel,

I have noticed that especially in DS, whenever I am facing a question with regard to SIMPLE INTEREST, AMOUNT, Compounded annually and so on, i get stumped given the limited time frame during a test so I would be grateful if you could suggest me some questions on similar topic that would enable me to understand its most common types and tricky areas.

Placing the values in a given formula is easy. It is getting the synopsis of the qs in a read that would matter.

Thanks in advance

Just curious...Obviously stmt 2 alone is insufficient because we know nothing about the rates. But if the question stem had given us the relation between the interest rates (maybe y=3x), would stmt 2 have been sufficient? (in cases where Y is greater than X).

Thanks

why can't Y & X be 0% and thus the answer is E? How should I know X/Y > 0%?

Hi - I'm still not understanding why (1) is sufficient because if X=Y=0 then the answer is 'No - A's interest not > than B', but if A>0 then the answer is 'Yes'

Why can't the interest rate be 0% for both accounts and thus the answer is E?

I'm with mdacosta and geek on this one. Answer should be E) if there is no interest at all.

I think this is a poor-quality question and I don't agree with the explanation. if x = 0 then y = 0 and thus total interest on both deposits is equal, i.e. 0.