GMAT Question of the Day - Daily to your Mailbox; hard ones only

 It is currently 26 May 2019, 20:52

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

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

Two equal sums of money are invested, one under simple interest and

Author Message
Math Expert
Joined: 02 Sep 2009
Posts: 55277
Two equal sums of money are invested, one under simple interest and  [#permalink]

Show Tags

10 Jul 2017, 02:42
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:14) correct 0% (00:00) wrong based on 3 sessions

HideShow timer Statistics

Two equal sums of money are invested, one under simple interest and the other under compound interest, both at the same rate of interest per annum. What is the rate of interest?

(1) The difference between the simple interest and compound interest after 2 years is \$110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________
SVP
Joined: 26 Mar 2013
Posts: 2187
Re: Two equal sums of money are invested, one under simple interest and  [#permalink]

Show Tags

11 Jul 2017, 06:54
Bunuel wrote:
Two equal sums of money are invested, one under simple interest and the other under compound interest, both at the same rate of interest per annum. What is the rate of interest?

(1) The difference between the simple interest and compound interest after 2 years is \$110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.

Dear Bunuel,

Can you please review the wording of Statement 1? It is nonsensical that difference between interest rates is an amount of money (\$). I think It should difference between amounts invested with its correspondent rates.

Thanks
Director
Joined: 21 Mar 2016
Posts: 518
Re: Two equal sums of money are invested, one under simple interest and  [#permalink]

Show Tags

11 Jul 2017, 07:02
stat1 :simple interest after 2 years = 2I...,,,,,,(1)
compound interest after 2 years = I + (I + r% of I),,,,,,,(2)
(2) - (1) difference is rt/100 = 110...not suff

stat 2: direct substitution in the formula Simple interes = PRT /100 gives u the answer

ans B
Retired Moderator
Joined: 28 Mar 2017
Posts: 1211
Location: India
GMAT 1: 730 Q49 V41
GPA: 4
Re: Two equal sums of money are invested, one under simple interest and  [#permalink]

Show Tags

11 Jul 2017, 07:47
Mo2men wrote:
Bunuel wrote:
Two equal sums of money are invested, one under simple interest and the other under compound interest, both at the same rate of interest per annum. What is the rate of interest?

(1) The difference between the simple interest and compound interest after 2 years is \$110.
(2) If the rate of interest were squared, the interest accumulated under simple interest after 2 years would have become 4 times its actual value.

Dear Bunuel,

Can you please review the wording of Statement 1? It is nonsensical that difference between interest rates is an amount of money (\$). I think It should difference between amounts invested with its correspondent rates.

Thanks

Hi,

Simple interest means the interest accumulated on the principal. Similarly, compound interest means the interest compounded. there is nothing wrong in the statement.

Hope this helps.

Statement 1 is insufficient.
Statement 2:
2Sr^2/100 = 4Sr/100
=> r(r-2)=0
=> r=2 {Since r cannot be 0}

Hence B. Bunuel please correct me if i am wrong.

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________
Re: Two equal sums of money are invested, one under simple interest and   [#permalink] 11 Jul 2017, 07:47
Display posts from previous: Sort by