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01 Dec 2020, 20:26
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C
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Difficulty:
55%
(hard)
Question Stats:
70% (02:52) correct
30%
(02:47)
wrong
based on 165
sessions
History
Date
Time
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Not Attempted Yet
The difference between the Simple Interest and compound interest (For the same principal and rate) after 2 years is $50.
If the same principal was kept for 3 years at Simple Interest, the interes accrued would be $480.
Find the rate% assuming that the principal and rate are the same for simple and compound interest.
A. 30.25%
B. 30.75%
C. 31.25%
D. 31.50%
E. 31.75%
If the same principal was kept for 3 years at Simple Interest, the interes accrued would be $480.
Find the rate% assuming that the principal and rate are the same for simple and compound interest.
A. 30.25%
B. 30.75%
C. 31.25%
D. 31.50%
E. 31.75%
globaldesi
Joined: 28 Jul 2016
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Concentration: Finance, Human Resources
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01 Dec 2020, 20:44
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CrackVerbalGMAT
The difference between the Simple Interest and compound interest (For the same principal and rate) after 2 years is $50.
If the same principal was kept for 3 years at Simple Interest, the interes accrued would be $480.
Find the rate% assuming that the principal and rate are the same for simple and compound interest.
A. 30.25%
B. 30.75%
C. 31.25%
D. 31.50%
E. 31.75%
If the same principal was kept for 3 years at Simple Interest, the interes accrued would be $480.
Find the rate% assuming that the principal and rate are the same for simple and compound interest.
A. 30.25%
B. 30.75%
C. 31.25%
D. 31.50%
E. 31.75%
that means 50 is the interest on S.I for 1 year
and simple interest for 3 years is 480 thus for 1 years = \(\frac{480}{3}\) = 160
or
\(\frac{r*160}{100 }\)= 50
or r = 31.25
C IMO
General Discussion
02 Dec 2020, 10:17
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The difference between C.I. and S.I. for 2 years is given by \(\frac{[PR^2] }{ (100^2)}\)
=> \(\frac{[PR^2] }{ (100^2)}\) = $50
=> \(PR^2\) = 50 * 100 * 100 --------Eqn(1)
S.I. for '3' years is $480
=> S.I. = \(\frac{[P * R * T] }{ 100}\)
=> 480 = \(\frac{[P * R * 3] }{ 100}\)
=> P * R = 160 * 100 --------Eqn(2)
By \(\frac{[Eqn(1)] }{ [Eqn(2)]}\)
=> \(\frac{[PR^2] }{ [PR]}\) = \(\frac{[50 * 100 * 100] }{ [160 * 100] }\)
=> R = \(\frac{250}{8}\)
=> R = 31.25%
Answer C
=> \(\frac{[PR^2] }{ (100^2)}\) = $50
=> \(PR^2\) = 50 * 100 * 100 --------Eqn(1)
S.I. for '3' years is $480
=> S.I. = \(\frac{[P * R * T] }{ 100}\)
=> 480 = \(\frac{[P * R * 3] }{ 100}\)
=> P * R = 160 * 100 --------Eqn(2)
By \(\frac{[Eqn(1)] }{ [Eqn(2)]}\)
=> \(\frac{[PR^2] }{ [PR]}\) = \(\frac{[50 * 100 * 100] }{ [160 * 100] }\)
=> R = \(\frac{250}{8}\)
=> R = 31.25%
Answer C
