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14 Jun 2016, 10:48
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Difficulty:

25% (medium)

Question Stats:

75% (00:59) correct 25% (00:50) wrong based on 52 sessions

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On January 1, 2003, Jack invested $5,000 at r percent interest rate, compounded annually. What is the value of r? (1) The investment plus the total interest at the end of 2004 was$550 more than the amount at the end of 2003.
(2) The investment plus the total interest at the end of 2004 increased by 21% from the original investment.
[Reveal] Spoiler: OA

Kudos [?]: 9 [0], given: 0

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Joined: 17 Dec 2014
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Kudos [?]: 5 [0], given: 1

Location: India
Concentration: Finance, International Business
GPA: 3.5
WE: Information Technology (Computer Software)

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14 Jun 2016, 18:59
YAObolt wrote:
On January 1, 2003, Jack invested $5,000 at r percent interest rate, compounded annually. What is the value of r? (1) The investment plus the total interest at the end of 2004 was$550 more than the amount at the end of 2003.
(2) The investment plus the total interest at the end of 2004 increased by 21% from the original investment.

Formula for $$CI = P(1+\frac{r}{100})^n - P$$....
where P is amount , r is rate of interest, CI is interest and n is # of years.....
we are given P, we require CI and n for finding r..

lets see the statements-

(1) The investment plus the total interest at the end of 2004 was $550 more than the amount at the end of 2003. we are given n as 1, CI as 550 and P will be initial P + CI for first year, and will be in terms of r again.. r can be found ... suff (2) The investment plus the total interest at the end of 2004 increased by 21% from the original investment we can know interest from this 21% of 5000... n is 2 years.... r can be found suff D _________________ Absolute modulus :http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372 Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html BANGALORE/- Kudos [?]: 6426 [0], given: 122 Non-Human User Joined: 09 Sep 2013 Posts: 14241 Kudos [?]: 291 [0], given: 0 Re: On January 1, 2003, Jack invested$5,000 at r percent interest ra [#permalink]

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10 Oct 2017, 07:00
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Re: On January 1, 2003, Jack invested $5,000 at r percent interest ra [#permalink] 10 Oct 2017, 07:00 Display posts from previous: Sort by # On January 1, 2003, Jack invested$5,000 at r percent interest ra

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