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On January 1, 2003, Jack invested $5,000 at r percent interest ra

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On January 1, 2003, Jack invested $5,000 at r percent interest ra [#permalink]

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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.
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Re: On January 1, 2003, Jack invested $5,000 at r percent interest ra [#permalink]

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New post 14 Jun 2016, 19:05
I tackled the ques this way, let me know if my understanding is correct

Statement 1 gives us total amount at the end of 2004-total amount at the ne d of 2003= 550 which is infact the interest. So from here we can calculate the value of r.
Sufficient

Statement 2 gives us the final amount (5000+21% of 5000), the initial amount and the tenure (2 years). From this statement as well we can calculate r.
Sufficient

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Re: On January 1, 2003, Jack invested $5,000 at r percent interest ra [#permalink]

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New post 14 Jun 2016, 19:59
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

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Re: On January 1, 2003, Jack invested $5,000 at r percent interest ra [#permalink]

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Re: On January 1, 2003, Jack invested $5,000 at r percent interest ra   [#permalink] 10 Oct 2017, 08:00
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