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

It is currently 19 May 2019, 10:27

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.

Close

Request Expert Reply

Confirm Cancel

Petro invested x dollars each in scheme A and scheme B for two years.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Senior Manager
Senior Manager
avatar
P
Joined: 18 Feb 2019
Posts: 367
Location: India
GMAT 1: 460 Q42 V13
GPA: 3.6
Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

Show Tags

New post 13 Apr 2019, 08:02
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

64% (01:51) correct 36% (02:28) wrong based on 11 sessions

HideShow timer Statistics

Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent per annum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro at the end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest in scheme A?

A. 630
B. 3150
C. 5040
D. 6300
E. Cannot be determined
Intern
Intern
avatar
B
Joined: 18 Mar 2019
Posts: 1
Re: Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

Show Tags

New post 13 Apr 2019, 08:16
Assume amount invested as 100. Simple interest after 2 years = 20
Compound interest after 2 years = 21
1 unit difference (21-20) = 63 dollars. 100 units = 63*100. Answer is 6300

Posted from my mobile device
Manager
Manager
avatar
B
Joined: 05 Oct 2017
Posts: 63
Re: Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

Show Tags

New post 13 Apr 2019, 13:47
kiran120680 wrote:
Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent per annum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro at the end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest in scheme A?

A. 630
B. 3150
C. 5040
D. 6300
E. Cannot be determined


I got B - 3150. Can someone post a detailed answer and explain why D should be the answer?
_________________
Press Kudos if you liked my response!!!
Intern
Intern
avatar
B
Joined: 23 Mar 2013
Posts: 3
GMAT ToolKit User
Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

Show Tags

New post 13 Apr 2019, 16:22
1
let the amount be x, 2 years interest at 10% = 20x/100

2 years compound interest =
10x/100 + 1.1x/100 (as the principle would become 1.1 times the original because of 10% interest in the first year)

as compound interest is greater by 63, so
10*x/100 + 1.1*10*x/100 = 20x/100 + 63

solve for x, it will come 6300..

Other way is,
the first year interest is same and the difference is because of the 10% on the first year interest,
let's say the first year interest is x, so x*10/100 = 63, i.e. x = 630
which is the 10% interest on principle, so the principle would be 630* 100/10 = 6300
GMAT Club Bot
Petro invested x dollars each in scheme A and scheme B for two years.   [#permalink] 13 Apr 2019, 16:22
Display posts from previous: Sort by

Petro invested x dollars each in scheme A and scheme B for two years.

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


cron
Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

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

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.