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09 Apr 2021, 05:30
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D
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Difficulty:
65%
(hard)
Question Stats:
64% (02:22) correct
36%
(02:53)
wrong
based on 180
sessions
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Not Attempted Yet
For a sum of money, the difference between compound interest and simple interest, each invested for 2 years, at the same rate of interest, is $63. If the simple interest on the sum after 2 years is $600, at what rate of interest the sum of money was invested?
(A) 25%
(B) 24%
(C) 22%
(D) 21%
(E) 10%
(A) 25%
(B) 24%
(C) 22%
(D) 21%
(E) 10%
csingh158
Current Student
Joined: 06 Jan 2013
Last visit: 03 Jul 2022
Posts: 16
Own Kudos:
Given Kudos: 151
Location: India
Schools: Sauder (A)
GMAT 1: 680 Q50 V31
GPA: 2.7
10 Apr 2021, 04:17
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We need to find the Rate,
Given that:
CI-SI for 2 years is 63
i.e
(Pls note "p" means to the power)
P(1+R/100)p2 - P - PR/50 = 63
or
P + PRp2/10000 + PR/50 - P - PR/50 = 63
or
PRxR/10000=63 .... eq 1
Also given
PR=600X50
PR=30000
Using this in eq 1, we get
R30000/10000=63
3R=63
R=21
That is option D.
Given that:
CI-SI for 2 years is 63
i.e
(Pls note "p" means to the power)
P(1+R/100)p2 - P - PR/50 = 63
or
P + PRp2/10000 + PR/50 - P - PR/50 = 63
or
PRxR/10000=63 .... eq 1
Also given
PR=600X50
PR=30000
Using this in eq 1, we get
R30000/10000=63
3R=63
R=21
That is option D.
10 Apr 2021, 13:56
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The difference in interest arises in the 2nd Year only,
Therefore,
assuming x = rate of interest
x/100 [x/100 * P] = 63
x/100*P equals the interest earned in the first year = 600/2 = 300
x/100 [300] = 63
solving, we get 21
Answer is D
Therefore,
assuming x = rate of interest
x/100 [x/100 * P] = 63
x/100*P equals the interest earned in the first year = 600/2 = 300
x/100 [300] = 63
solving, we get 21
Answer is D
