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

It is currently 15 Jun 2019, 21:57

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

M17-14

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

Hide Tags

 
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 55609
M17-14  [#permalink]

Show Tags

New post 16 Sep 2014, 01:01
00:00
A
B
C
D
E

Difficulty:

  35% (medium)

Question Stats:

72% (01:43) correct 28% (01:49) wrong based on 87 sessions

HideShow timer Statistics

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

_________________
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 55609
Re M17-14  [#permalink]

Show Tags

New post 16 Sep 2014, 01:01
Manager
Manager
User avatar
Joined: 06 Mar 2014
Posts: 228
Location: India
GMAT Date: 04-30-2015
Reviews Badge
Re: M17-14  [#permalink]

Show Tags

New post 19 Sep 2014, 00:24
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 :)
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 55609
Re: M17-14  [#permalink]

Show Tags

New post 19 Sep 2014, 01:34
earnit wrote:
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 :)


Check Compound Interest Problems in our Special Questions Directory.

Theory on Percent and Interest Problems: math-number-theory-percents-91708.html

All DS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=33
All PS Percent and Interest Problems to practice: search.php?search_id=tag&tag_id=54

Hope this helps.
_________________
Manager
Manager
avatar
Joined: 08 Feb 2014
Posts: 204
Location: United States
Concentration: Finance
GMAT 1: 650 Q39 V41
WE: Analyst (Commercial Banking)
Re: M17-14  [#permalink]

Show Tags

New post 24 Nov 2014, 06:39
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
Manager
Manager
avatar
Joined: 24 Jul 2011
Posts: 176
Location: India
GMAT 1: 570 Q50 V19
GMAT 2: 650 Q49 V28
GMAT 3: 690 Q50 V34
WE: Information Technology (Investment Banking)
GMAT ToolKit User Reviews Badge
Re: M17-14  [#permalink]

Show Tags

New post 21 Oct 2015, 07:15
Hi Bunuel,

I am just curious, what shall be the equation of option A. (I agree we don't need an equation over here, but just for understanding, in case we need it, I am curious to know what is actually the calculation)

P (1 + x/100)^3 + P/2 > P/2* (1 + y/100)^3 - P/2
_________________
Middle of nowhere!
Manager
Manager
avatar
B
Joined: 05 Dec 2015
Posts: 108
Reviews Badge
Re: M17-14  [#permalink]

Show Tags

New post 09 Jun 2016, 23:28
why can't Y & X be 0% and thus the answer is E? How should I know X/Y > 0%?
Intern
Intern
avatar
Joined: 20 Jan 2013
Posts: 9
GMAT 1: 660 Q49 V30
Reviews Badge
Re: M17-14  [#permalink]

Show Tags

New post 21 Aug 2016, 07:45
x>y only when x and y are greater than 1.

x=0.2 y=0.16 as per statement 1.Therefore,x <y. If the amount is really small this may affect the answer.
Manager
Manager
avatar
B
Joined: 05 Dec 2015
Posts: 108
Reviews Badge
Re: M17-14  [#permalink]

Show Tags

New post 23 Aug 2016, 23:54
Bunuel wrote:
Official Solution:


Statement (1) by itself is sufficient. It means that \(y \lt x\). A smaller amount deposited at a smaller rate will grow to a smaller figure than a larger amount deposited at a higher rate.

Statement (2) by itself is insufficient. We don't know how the interest paid on the deposits compares with the initial difference of $100.


Answer: A


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?
Intern
Intern
avatar
Joined: 06 May 2016
Posts: 33
M17-14  [#permalink]

Show Tags

New post 14 Sep 2016, 06:07
Bunuel
I have similar doubt as mdacosta. Why cant x be 0?
I understand that amount deposited cant be 0 otherwise 2nd amount wouldn't be half of the first but x can very well be 0.
Please elaborate!
Manager
Manager
User avatar
S
Joined: 17 Jan 2017
Posts: 61
Premium Member
Re: M17-14  [#permalink]

Show Tags

New post 29 Apr 2018, 04:15
I'm with mdacosta and geek on this one. Answer should be E) if there is no interest at all.
Intern
Intern
avatar
B
Joined: 21 Jun 2018
Posts: 3
Re: M17-14  [#permalink]

Show Tags

New post 17 Jul 2018, 20:29
I second the point of x=y=0 , in that case answer is E
Intern
Intern
avatar
B
Joined: 04 Dec 2018
Posts: 1
Re M17-14  [#permalink]

Show Tags

New post 05 Feb 2019, 14:58
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.
GMAT Club Bot
Re M17-14   [#permalink] 05 Feb 2019, 14:58
Display posts from previous: Sort by

M17-14

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

Moderators: chetan2u, Bunuel



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