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14 Jun 2016, 11:48
1
3
00:00

Difficulty:

15% (low)

Question Stats:

77% (00:59) correct 23% (00:56) wrong based on 64 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.
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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 D _________________ 1) Absolute modulus : http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372 2)Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html 3) effects of arithmetic operations : https://gmatclub.com/forum/effects-of-arithmetic-operations-on-fractions-269413.html GMAT online Tutor Non-Human User Joined: 09 Sep 2013 Posts: 8104 Re: On January 1, 2003, Jack invested$5,000 at r percent interest ra  [#permalink]

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10 Oct 2017, 08:00
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