Summer is Coming! Join the Game of Timers Competition to Win Epic Prizes. Registration is Open. Game starts Mon July 1st.

 It is currently 18 Jul 2019, 06:34

### 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

### Show Tags

22 Nov 2018, 01:13
00:00

Difficulty:

15% (low)

Question Stats:

87% (01:30) correct 13% (01:08) wrong based on 38 sessions

### HideShow timer Statistics

Samuel borrowed $5,000 to help get his business started. He took out a 9-month loan with simple interest, based on an annual interest rate of 6%. What was the total amount Sam was required to pay back at the end of the loan period? A.$5,054
B. $5,225 C.$5,300
D. $5,600 E.$5,750

_________________
Senior Manager
Joined: 13 Jan 2018
Posts: 338
Location: India
Concentration: Operations, General Management
GMAT 1: 580 Q47 V23
GMAT 2: 640 Q49 V27
GPA: 4
WE: Consulting (Consulting)
Re: Samuel borrowed $5,000 to help get his business started. He took out [#permalink] ### Show Tags 22 Nov 2018, 01:40 1 Simple interest rate is 6% for 12 months. But Samuel would return the money in 9 months. So the interest rate would be $$\frac{9}{12}*6$$% => 4.5% 4.5% of$5000 = $225. Samuel would return$5225 after 9 months.

OPTION: B
_________________
____________________________
Regards,

Chaitanya

+1 Kudos

if you like my explanation!!!
GMAT Club Legend
Joined: 18 Aug 2017
Posts: 4242
Location: India
Concentration: Sustainability, Marketing
GPA: 4
WE: Marketing (Energy and Utilities)
Re: Samuel borrowed $5,000 to help get his business started. He took out [#permalink] ### Show Tags 22 Nov 2018, 01:44 Bunuel wrote: Samuel borrowed$5,000 to help get his business started. He took out a 9-month loan with simple interest, based on an annual interest rate of 6%. What was the total amount Sam was required to pay back at the end of the loan period?

A. $5,054 B.$5,225
C. $5,300 D.$5,600
E. $5,750 5000*6*9/12/100= 225 5000+225= option B _________________ If you liked my solution then please give Kudos. Kudos encourage active discussions. Director Joined: 20 Sep 2016 Posts: 636 Location: India Concentration: Strategy, Operations GPA: 3.95 WE: Operations (Real Estate) Re: Samuel borrowed$5,000 to help get his business started. He took out  [#permalink]

### Show Tags

25 Nov 2018, 11:15
13 seconds -No need for calcutions here:

Questions says interest for 9 months so obviously the interest will be less that interest on 1 year.
Just calculate 6% of 5000 in mind. Once you get 300, eliminate every answer that has 300 and 300+ .

Now A and B remain. The interest is on 9 months which is close to 12 months so the interest will be slightly less than 300 .

Posted from my mobile device