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

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Senior Manager
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]

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13 Apr 2019, 08:02
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Difficulty:

45% (medium)

Question Stats:

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

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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
Joined: 18 Mar 2019
Posts: 1
Re: Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

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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

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

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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?
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Intern
Joined: 23 Mar 2013
Posts: 3
Petro invested x dollars each in scheme A and scheme B for two years.  [#permalink]

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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
Petro invested x dollars each in scheme A and scheme B for two years.   [#permalink] 13 Apr 2019, 16:22
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# Petro invested x dollars each in scheme A and scheme B for two years.

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