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Torres invested $P in a long term investment plan for 24 years at an i

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Torres invested $P in a long term investment plan for 24 years at an i  [#permalink]

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New post 31 Jul 2017, 23:43
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D
E

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Question Stats:

49% (01:41) correct 51% (01:59) wrong based on 73 sessions

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Torres invested $P in a long term investment plan for 24 years at an interest compound annually. But due to some financial issues he had to withdraw money at the end of 6 years.How much more amount could he have gotten after 24 years if he received $3P after 6 years , if it's known that there were no pre-closing charges or deductions in the plan?

A. 9P
B. 12P
C. 72P
D. 78P
E. 81P
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Re: A man invested $ P in a long term investment plan for 24 years at an i  [#permalink]

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New post 02 Mar 2019, 20:24
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This question is tricky at first since we don't know the compounding interest rate, and feels like perhaps we would need a compound interest formula to solve, but let's consider.

It started at P and then compounded 6 times and tripled itself to 3P. So this is more like a Geometric sequence question!

The rule is "P triples every 6 years."

Year 1 - P
Year 6 - 3P
Year 12 - 9P
Year 18 - 27P
Year 24 - 81P

How much more means we subtract 3P from 81P:
81P-3P = 78P

The answer is (D). This is an interesting question -- a sequence in disguise! :)
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Re: Torres invested $P in a long term investment plan for 24 years at an i  [#permalink]

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New post 31 Jul 2017, 23:48
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DH99 wrote:
Torres invested $P in a long term investment plan for 24 years at an interest compound annually. But due to some financial issues he had to withdraw money at the end of 6 years.How much more amount could he have gotten after 24 years if he received $3P after 6 years , if it's known that there were no pre-closing charges or deductions in the plan?

A. 9P
B. 12P
C. 72P
D. 78P
E. 81P


Solution:
P is the term initially invested. Torres gets 3P after 6 years.We need to find what more amount could he have gotten after 24 years.
Let’s arrange the data:
Amount Time
? 24
P 0
3P 6
3P*3 12
3P*3*3 18
3P*3*3*3 24
= 81P
Therefore, more amount Toress would have got= 81P-3P=78P
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Re: A man invested $P in a long term investment plan for 24 years at an in  [#permalink]

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New post 22 May 2018, 17:46
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Option D

6y: P > 3P
12y: 3P > 9P
18y: 9P >27P
24y: 27P > 81P

81P - 3P = 78P
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Re: A man invested $ P in a long term investment plan for 24 years at an i  [#permalink]

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New post 05 Aug 2019, 07:32
mangamma wrote:
A man invested $ P in a long term investment plan for 24 years at an interest compounded annually. Due to some financeil crisis he had to withdraw money at the end of 6 years. How much more amount could be have gotten after 24 years if he received $ 3P after 6 years. It is known that there were no other charges of deduction in the plan?
A) 9P
B)24P
c)72P
D)78P
E)81P


24 years / 6 years as every 6 years the investment becomes thrice of the investment . So we get 24/6 = 4 intervals .

Now,
P$ ---------3P$ (1-6 YEARS)
3P$--(*3)--9P& (6-12 YEARS)
9P$--(*3)--27P$ (12- 18 YEARS)
27P$-(*3)--81P$ (18- 24 YEARS)

NOW How much more amount could he have gotten after 24 years , simply find difference between the amt he received and the final amt which he would have received after 24 years = 3P$ -81P$ = 78$ ,

ANSWER IS D
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Re: A man invested $ P in a long term investment plan for 24 years at an i   [#permalink] 05 Aug 2019, 07:32

Torres invested $P in a long term investment plan for 24 years at an i

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