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An investment yields an interest payment of $228 each month. If the

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Bunuel
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An investment yields an interest payment of $228 each month. If the [#permalink] New post   07 Jun 2016, 06:23
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An investment yields an interest payment of $228 each month. If the simple annual interest rate is 9%, what is the amount of the investment?

A. $28,300
B. $30,400
C. $31,300
D. $32,500
E. $35,100
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   07 Jun 2016, 07:11
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Let the principal amount = P
Simple annual interest = 9%
Simple monthly interest = (9/12) = (3/4)%

(3/4)*(P/100) = 228
=>P = (228 *4 * 10^2 )/3
= 76*4*10^2
= 304 * 10^2

Answer B
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   07 Jun 2016, 07:36
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Bunuel wrote:
An investment yields an interest payment of $228 each month. If the simple annual interest rate is 9%, what is the amount of the investment?

A. $28,300
B. $30,400
C. $31,300
D. $32,500
E. $35,100


PRT = Simple Interest

Annual interest rate is given as 9%. Monthly interest rate will be 9/12%

p = 228/9/12*100= 228*100*12/9= 30400

B is the answer
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   07 Jun 2016, 07:51
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$228 a month = 228*12 a year
therefore,
228*12=p*9*1/100
76*4*100 =30400
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   08 Jun 2016, 14:24
If the interest is 228/month, then for the year interest will be 2,736, so you get .09x = 2736. The answer is B.
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   09 Jun 2016, 05:20
Bunuel wrote:
An investment yields an interest payment of $228 each month. If the simple annual interest rate is 9%, what is the amount of the investment?

A. $28,300
B. $30,400
C. $31,300
D. $32,500
E. $35,100


$228 interest payment each month. Hence during the year it will be = 12*228 = 2736
Now for the given option chose such amount whose last digit can be 6.
From the given option we can see that 9(Interest rate)*4 = 36.
Hence the answer is B.
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Re: An investment yields an interest payment of $228 each month. If the [#permalink] New post   27 Nov 2022, 07:08
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: An investment yields an interest payment of $228 each month. If the [#permalink]
27 Nov 2022, 07:08
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