GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 17 Feb 2019, 08:03

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

## Events & Promotions

###### Events & Promotions in February
PrevNext
SuMoTuWeThFrSa
272829303112
3456789
10111213141516
17181920212223
242526272812
Open Detailed Calendar
• ### Free GMAT Algebra Webinar

February 17, 2019

February 17, 2019

07:00 AM PST

09:00 AM PST

Attend this Free Algebra Webinar and learn how to master Inequalities and Absolute Value problems on GMAT.
• ### Valentine's day SALE is on! 25% off.

February 18, 2019

February 18, 2019

10:00 PM PST

11:00 PM PST

We don’t care what your relationship status this year - we love you just the way you are. AND we want you to crush the GMAT!

# Pat invested x dollars in a fund that paid 8 percent annual

Author Message
Senior Manager
Joined: 08 Jun 2004
Posts: 468
Location: Europe
Pat invested x dollars in a fund that paid 8 percent annual  [#permalink]

### Show Tags

09 May 2006, 00:15
1
00:00

Difficulty:

25% (medium)

Question Stats:

80% (00:18) correct 20% (00:20) wrong based on 160 sessions

### HideShow timer Statistics

Pat invested x dollars in a fund that paid 8 percent annual interest, compounded annually. Which of the following represents the value, in dollars, of Pat's investment plus interest at the end of 5 years&

A. 5(0.08x)
B. 5(1.08x)
C. {1+5(0.08)}x
D. (1.08)^5 *(x)
E. (1.08x)^5

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.
Director
Joined: 13 Nov 2003
Posts: 764
Location: BULGARIA
Re: Pat invested x dollars in a fund that paid 8 percent annual  [#permalink]

### Show Tags

09 May 2006, 01:05
Let the amount invested is S. 8% annual interest compounded anualy means that in 1 year S will increase with 8% or 1,08*S. In the second year you will have 1,08*S+ 1,08*S*0,08=1,08*S*(1+0,08)=1.08^2*S, then in five years it would be in 5 th power respectively, or D)
Director
Joined: 24 Oct 2005
Posts: 619
Location: London
Re: Pat invested x dollars in a fund that paid 8 percent annual  [#permalink]

### Show Tags

09 May 2006, 01:30
1
Use formula

A = P(1 + r)^n

P = principal
r = rate compounded annually
n = no of years

x(1 + .08)^5

Ans = D

**********

A more detailes formula when the interst is compounded more than 1 time a year :

A = P* [ (1+r/n) ^nt ]

n = no of times interest is compunded.
t = no of years.
Director
Joined: 27 May 2008
Posts: 521
Re: Pat invested x dollars in a fund that paid 8 percent annual  [#permalink]

### Show Tags

12 Jul 2008, 08:44
D

thats the formula... A = P(1+r/100)^n

A = Final amount
P = inital amount
r = rate of interest in %
n = number of periods
Non-Human User
Joined: 09 Sep 2013
Posts: 9836
Re: Pat invested x dollars in a fund that paid 8 percent annual  [#permalink]

### Show Tags

25 Jan 2019, 22:13
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).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: Pat invested x dollars in a fund that paid 8 percent annual   [#permalink] 25 Jan 2019, 22:13
Display posts from previous: Sort by