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Mr. Daniels deposits $10,000 in a savings certificate earning p percen

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Bunuel
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Mr. Daniels deposits $10,000 in a savings certificate earning p percen [#permalink] New post   10 Apr 2020, 05:28
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59% (01:50) correct 41% (01:48) wrong based on 207 sessions
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Mr. Daniels deposits $10,000 in a savings certificate earning p percent annual interest compounded quarterly. What is the value of p?

(1) During the term of the certificate, he earns $18 more than he would if the interest were not compounded.
(2) He withdraws all the money six months after depositing it


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dhaundiyalmanan
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Re: Mr. Daniels deposits $10,000 in a savings certificate earning p percen [#permalink] New post   10 Apr 2020, 05:36
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1. No time is given hence NS
2. No interest given hence NS

1&2 we have rate and time. We can calculate first SI and then CI
Hence sufficient

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Re: Mr. Daniels deposits $10,000 in a savings certificate earning p percen [#permalink] New post   10 Apr 2020, 05:32
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Bunuel wrote:
Mr. Daniels deposits $10,000 in a savings certificate earning p percent annual interest compounded quarterly. What is the value of p?

(1) During the term of the certificate, he earns $18 more than he would if the interest were not compounded.
(2) He withdraws all the money six months after depositing it


Question: p = ?

Statement 1: During the term of the certificate, he earns $18 more than he would if the interest were not compounded.

Term of deposit is unknown hence

NOT SUFFICIENT

Statement 2: He withdraws all the money six months after depositing it

no information about the interest earned hence

NOT SUFFICIENT

Combining the statements

i.e. \(\frac{10000*p*(0.5)}{100} + 18 = 10000*[1+ \frac{(0.25*p)}{100}]^2\)

Only one unknown hence

SUFFICIENT

Answer: Option C
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Mr. Daniels deposits $10,000 in a savings certificate earning p percen [#permalink] New post   21 Oct 2022, 01:50
GMATinsight wrote:
Bunuel wrote:
Mr. Daniels deposits $10,000 in a savings certificate earning p percent annual interest compounded quarterly. What is the value of p?


Combining the statements

i.e. \(\frac{10000*p*(0.5)}{100} + 18 = 10000*[1+ \frac{(0.25*p)}{100}]^2\)

Only one unknown hence

SUFFICIENT

Answer: Option C


I cannot really follow the left part of the equation: isn't the left part of the equation the interest payment after 6 months whereas the right part is the total amount we receive after 6 months? IMO there should + 10018 instead of + 18 on the left. Can you please help me understand whether my way of thinking is correct? I know its not answer changing but i am currently trying to figure out the whole investment concept at a deeper level :D so help would be appreciated!

Thanks
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Mr. Daniels deposits $10,000 in a savings certificate earning p percen [#permalink]
21 Oct 2022, 01:50
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