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# The annual interest rate earned by an investment increased by 10 perce

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Math Expert
Joined: 02 Sep 2009
Posts: 51218
The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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03 Jul 2016, 10:36
11
00:00

Difficulty:

5% (low)

Question Stats:

80% (01:01) correct 20% (01:29) wrong based on 401 sessions

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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%

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Joined: 02 Mar 2012
Posts: 310
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Re: The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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03 Jul 2016, 22:59
should be 10

increased it by 10 % will be =10+1=11
Manager
Joined: 17 Nov 2014
Posts: 51
Location: India
Re: The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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10 Jul 2016, 16:27
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
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Re: The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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14 Apr 2017, 04:11
4
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%.

$$\cfrac { 110 }{ 100 } (x)=11\\ x=\cfrac { 11\ast 100 }{ 110 } \\ x=10$$
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The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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17 May 2017, 14:40
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 annual interest rate last year be = x%
Annual interest rate increased by 10% from last year to this year = 110% of x = 1.1x%
Interest rate this year = 11% = 1.1x %
$$\frac{1.1x}{100}$$ = $$\frac{11}{100}$$
x = $$\frac{11}{1.1}$$ = 10%

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Re: The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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22 May 2017, 17:42
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%

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Re: The annual interest rate earned by an investment increased by 10 perce  [#permalink]

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04 Jul 2018, 02:24
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

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Re: The annual interest rate earned by an investment increased by 10 perce &nbs [#permalink] 04 Jul 2018, 02:24
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