Last visit was: 25 Jul 2024, 02:33 It is currently 25 Jul 2024, 02:33
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
SORT BY:
Date
Tags:
Difficulty: Sub 505 Level,   Percent and Interest Problems,                           
Show Tags
Hide Tags
Math Expert
Joined: 02 Sep 2009
Posts: 94614
Own Kudos [?]: 643726 [66]
Given Kudos: 86749
Send PM
Most Helpful Reply
Manager
Manager
Joined: 22 Apr 2016
Status:On a 600-long battle
Posts: 122
Own Kudos [?]: 104 [19]
Given Kudos: 392
Location: Hungary
Concentration: Accounting, Leadership
Schools: Erasmus '19
GMAT 1: 410 Q18 V27
GMAT 2: 490 Q35 V23
Send PM
Director
Director
Joined: 04 Dec 2015
Posts: 620
Own Kudos [?]: 1620 [9]
Given Kudos: 276
Location: India
Concentration: Technology, Strategy
WE:Information Technology (Consulting)
Send PM
General Discussion
avatar
Manager
Manager
Joined: 02 Mar 2012
Posts: 198
Own Kudos [?]: 299 [2]
Given Kudos: 4
Schools: Schulich '16
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
2
Kudos
should be 10

increased it by 10 % will be =10+1=11
Manager
Manager
Joined: 17 Nov 2014
Posts: 53
Own Kudos [?]: 67 [4]
Given Kudos: 166
Location: India
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
3
Kudos
1
Bookmarks
Let us suppose the interest rate last year is X, This year the interest rate is increased by 10%. Hence this year interest rate would be 1.1*X.
Setting up the equation -----> 11=1.1*x
X=10%

Option D
Target Test Prep Representative
Joined: 14 Oct 2015
Status:Founder & CEO
Affiliations: Target Test Prep
Posts: 19199
Own Kudos [?]: 22718 [8]
Given Kudos: 286
Location: United States (CA)
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
4
Kudos
4
Bookmarks
Expert Reply
Bunuel wrote:
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 11 percent, what was the annual interest rate last year?

A) 1%
B) 1.1%
C) 9.1%
D) 10%
E) 10.8%


We can create the following equation in which x = the interest rate last year:

1.1x = 0.11

x = 0.11/1.1 = 11/110 = 1/10 = 0.1 = 10%

Answer: D
Manager
Manager
Joined: 18 Jan 2019
Posts: 59
Own Kudos [?]: 40 [2]
Given Kudos: 110
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
1
Kudos
1
Bookmarks
Bunuel wrote:
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 11 percent, what was the annual interest rate last year?

A) 1%
B) 1.1%
C) 9.1%
D) 10%
E) 10.8%



So here is my solution:

Let x be the original interest rate and A be the amount.
Given x increased by 10 percent from last year to this year
So current interest rate is x+0.1x
The annual intrest rate this year was 11 percent of the amount, So
x+0.1x = 0.11A
1.1x=0.11A
x= 1/10 of A
Since the answer is in percentage x% = 10% of A

Can someone please show me a simpler method to do this? The question is rated at 5 percent difficulty so I'm hoping there is a simpler way.

Thanks
Intern
Intern
Joined: 03 Jul 2020
Posts: 18
Own Kudos [?]: 14 [0]
Given Kudos: 9
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
How would have the wording of the question look like if the interest rate had increased from 1% to 11%?
Director
Director
Joined: 14 Jul 2010
Status:No dream is too large, no dreamer is too small
Posts: 958
Own Kudos [?]: 5019 [0]
Given Kudos: 690
Concentration: Accounting
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
Top Contributor
Bunuel wrote:
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 11 percent, what was the annual interest rate last year?

A) 1%
B) 1.1%
C) 9.1%
D) 10%
E) 10.8%



The original interest rate of Last year was = x
Total after increase = 1.10x

Interest earned this year 11% = 0.11

So, 1.10x = 0.11
x = 10%

Answer D.
Director
Director
Joined: 14 Jul 2010
Status:No dream is too large, no dreamer is too small
Posts: 958
Own Kudos [?]: 5019 [1]
Given Kudos: 690
Concentration: Accounting
Send PM
The annual interest rate earned by an investment increased by 10 perce [#permalink]
1
Kudos
Top Contributor
Bunuel wrote:
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 11 percent, what was the annual interest rate last year?

A) 1%
B) 1.1%
C) 9.1%
D) 10%
E) 10.8%


Let, Before increase interest rate was 100; After increasing 10% the interest rate was 110

Now, New is rate 110, Old rate was 100
If new rate is 11 the Old rate was:

\(\frac{100}{110}\)*\(100\)

=10%

The Answer is D.
Board of Directors
Joined: 11 Jun 2011
Status:QA & VA Forum Moderator
Posts: 6047
Own Kudos [?]: 4768 [0]
Given Kudos: 463
Location: India
GPA: 3.5
WE:Business Development (Commercial Banking)
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
Bunuel wrote:
The annual interest rate earned by an investment increased by 10 percent from last year to this year. If the annual interest rate earned by the investment this year was 11 percent, what was the annual interest rate last year?

A) 1%
B) 1.1%
C) 9.1%
D) 10%
E) 10.8%

Clean (D) 110% of 10 = 11, Hence Answer must be (D)
Manager
Manager
Joined: 19 Dec 2020
Posts: 160
Own Kudos [?]: 41 [1]
Given Kudos: 316
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
1
Kudos
Thank God for this forum, my brain was hurting reading this question. At one point I was reading it aloud, hoping it would make some sense.
Manager
Manager
Joined: 11 Aug 2021
Posts: 58
Own Kudos [?]: 17 [0]
Given Kudos: 83
Send PM
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
diegocml wrote:
I had to read the question stem 4 times to make sense of what the question was asking. Very confusing, but here it goes my approach.

Say you're not able to quickly set up your work as our friends did above, just do a word by word translation.

Call '\(x\)' the interest rate last year

Some value x increased by 10% last year and the result is a rate of 11%.

\(\cfrac { 110 }{ 100 } (x)=11\\ x=\cfrac { 11\ast 100 }{ 110 } \\ x=10\)


Why dont you have a divided by 100 under the 11
so 11/100 (since a percent means out of a 100)

Posted from my mobile device
GMAT Club Bot
Re: The annual interest rate earned by an investment increased by 10 perce [#permalink]
Moderator:
Math Expert
94614 posts