GMAT Question of the Day: Daily via email | Daily via Instagram New to GMAT Club? Watch this Video
close
It is currently 22 Jun 2021, 22:39
Register
GMAT Club Tests
Decision Tracker
My Rewards
New posts
New comers' posts

MBA Spotlight – Top 20 Virtual MBA Fair
June 14-30, 2021
Register Schedule
Super Wednesday:
INSEAD AdCom Live Q&A MIT Sloan AdCom Live Q&A Goizueta AdCom Live Q&A How to Pay for Your MBA Landing a Tech PM Job
Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Go to My Error Log Learn more
Close

Request Expert Reply

Confirm Cancel
Pat invested x dollars in a fund that paid 8 percent annual interest,
9 posts Go to First Unread Post
Print view
NEW TOPIC
POST REPLY
Downloads
My Bookmarks
Reviews
SORT BY:
Date
Kudos
Tags:
Find Similar Topics 

Show Tags
Hide Tags

User avatar
V
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 77369
Premium Member CAT Tests Top Member of the Month
Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  20 Jan 2017, 06:08
4
Bookmarks
Expert Reply
Attempt only this question Same topic and source Same topic and difficulty Same source and difficulty Random Chronological Reverse chronological Learn more
00:00
A
B
C
D
E

Difficulty:

5% (low)

Question Stats:

85% (00:49) correct 15% (01:03) wrong based on 211 sessions

Hide Show 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. \((1.08x)^5\)
ShowHide Answer
Official Answer
Official Answer and Stats are available only to registered users. Register/Login.

_________________
New to the GMAT CLUB Forum?

My Signature Questions' Collection:


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics
Signature Read More
Attempt only this question Same topic and source Same topic and difficulty Same source and difficulty Random Chronological Reverse chronological Learn more
User avatar
D
Abhishek009
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 5531
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
GMAT ToolKit User
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  20 Jan 2017, 07:46
1
Bookmarks
Bunuel wrote:
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

\(Amount = Principal ( 1 + \frac{Rate}{100})^{No \ of \ Years}\)

\(Amount = x ( 1 + \frac{8}{100})^5\)

\(Amount = x ( 1.08)^5\)

Hence, correct answer will be (D) \(x ( 1.08)^5\)
_________________
Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )
Signature Read More
avatar
B
OCDianaOC
Intern
Intern
Joined: 16 Oct 2017
Posts: 34
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  11 Mar 2018, 12:12
Is that the formula for simple interest?

I'm familiar with the compound interest formula, but never use this formula when the answer choices is an integer... usually, I just repeatedly multiply out... this question is an exception...
User avatar
V
pushpitkc
Senior PS Moderator
Joined: 26 Feb 2016
Posts: 3226
Location: India
GPA: 3.12
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  11 Mar 2018, 12:31
1
Bookmarks
OCDianaOC wrote:
Is that the formula for simple interest?

I'm familiar with the compound interest formula, but never use this formula when the answer choices is an integer... usually, I just repeatedly multiply out... this question is an exception...


Hi OCDianaOC

This is the formula for compound interest when done yearly

\(A = P*(1 + \frac{r}{100})^{n}\)
where
n - number of years
r - rate of interest
A - Amount realized at the end of n years
P - Principal invested initially

Coming back to this problem

Pat invests x(Principal) at 8%(R) for 5(n) years

Therefore, Amount = x*\((1 + \frac{8}{100})^5\) = x*\((1.08)^5\)(Option D)
_________________
You've got what it takes, but it will take everything you've got

Connect with me on LinkedIn - https://www.linkedin.com/in/pushpit-chhajer-19388112a/
Signature Read More
avatar
B
OCDianaOC
Intern
Intern
Joined: 16 Oct 2017
Posts: 34
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  11 Mar 2018, 13:20
Thank you! In that case, learning the simple interest formula isn't necessary for the GMAT, right? For simple interest questions, there is never the formula in the answer choices, always an integer instead?
User avatar
D
Abhishek009
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 5531
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
GMAT ToolKit User
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  12 Mar 2018, 08:56
OCDianaOC wrote:
Thank you! In that case, learning the simple interest formula isn't necessary for the GMAT, right? For simple interest questions, there is never the formula in the answer choices, always an integer instead?

Both are necessary, please go through this link to clear the concept

https://magoosh.com/gre/2012/compound-i ... n-the-gre/
_________________
Thanks and Regards

Abhishek....

PLEASE FOLLOW THE RULES FOR POSTING IN QA AND VA FORUM AND USE SEARCH FUNCTION BEFORE POSTING NEW QUESTIONS

How to use Search Function in GMAT Club | Rules for Posting in QA forum | Writing Mathematical Formulas |Rules for Posting in VA forum | Request Expert's Reply ( VA Forum Only )
Signature Read More
User avatar
V
NandishSS
Director
Director
Joined: 06 Jan 2015
Posts: 832
Location: India
Concentration: Operations, Finance
GPA: 3.35
WE:Information Technology (Computer Software)
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  06 Jan 2019, 04:13
1
Kudos
HI Bunuel

Please tag as GMATPrep EP2

Please find the below attachment
Attachments

GMATPrep EP2_QT.jpg
GMATPrep EP2_QT.jpg [ 63.6 KiB | Viewed 6154 times ]


_________________
आत्मनॊ मोक्षार्थम् जगद्धिताय च

Resource: GMATPrep RCs With Solution
Signature Read More
User avatar
V
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 77369
Premium Member CAT Tests Top Member of the Month
Re: Pat invested x dollars in a fund that paid 8 percent annual interest, [#permalink] New post  06 Jan 2019, 04:15
Expert Reply
NandishSS wrote:
HI Bunuel

Please tag as GMATPrep EP2

Please find the below attachment

__________________
Done. Thank you.
_________________
New to the GMAT CLUB Forum?

My Signature Questions' Collection:


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics
Signature Read More
User avatar
bumpbot
Non-Human User
Joined: 09 Sep 2013
Posts: 19501
Re: Pat invested x dollars in a fund that paid 8 percent annual [#permalink] New post  19 Apr 2020, 12:26
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.
_________________
GMAT Books | GMAT Club Tests | Best Prices on GMAT Courses | GMAT Mobile App | Math Resources | Verbal Resources
Signature Read More
GMAT Club Bot
gmatclubot
Re: Pat invested x dollars in a fund that paid 8 percent annual [#permalink]
19 Apr 2020, 12:26
NEW TOPIC
POST REPLY
Downloads
My Bookmarks
Reviews
Moderators:
chetan2u
Math Expert
10022 posts
Bunuel
Math Expert
77369 posts
yashikaaggarwal
Senior Moderator - Masters Forum
2547 posts
generis
Senior SC Moderator
4820 posts

cron

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Main navigation

GMAT Resources

Partners

MBA Resources

www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions