Events & Promotions
|
|
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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Apr 2610:00 AM EDT
-11:00 AM EDT
The Target Test Prep course represents a quantum leap forward in GMAT preparation, a radical reinterpretation of the way that students should study. Try before you buy with a 5-day, full-access trial of the course for FREE!
Apr 2711:00 AM EDT
-12:00 PM EDT
Prefer video-based learning? The Target Test Prep OnDemand course is a one-of-a-kind video masterclass featuring 400 hours of lecture-style teaching by Scott Woodbury-Stewart, founder of Target Test Prep and one of the most accomplished GMAT instructors
Apr 2808:00 AM PDT
-11:00 AM PDT
Whether you are just beginning your MBA journey or fine-tuning your path to a 700+ score, GMAT Day is designed to give you a competitive edge.
30 Dec 2014, 07:48
Kudos
Bookmarks
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!
Difficulty:
15%
(low)
Question Stats:
83% (01:37) correct
17%
(01:33)
wrong
based on 187
sessions
History
Date
Time
Result
Not Attempted Yet
Tough and Tricky questions: Percents.
Today Joelle opened an interest-bearing savings account and deposited $6,000. If the annual interest rate is 4 percent compounded interest, and she neither deposits nor withdraws money for exactly 2 years, how much money will she have in the account?
A. $6,048.00
B. $6,240.00
C. $6,450.00
D. $6,480.00
E. $6,489.60
Kudos for a correct solution.
30 Dec 2014, 08:18
Kudos
Bookmarks
For this question, we can again save quite some time if we guess the answer strategically. We know that $6,000 have been invested for two years and receive 4% annually compounded interest per year. We can quickly calculate 4% of $6,000 and get $240. Since 2 times $240 is $480, the money Joelle will have in her account should be slightly above $6,480, since we didn't account for compound interest in the estimation above.
As only answer E is greater than $6,480, this must be the answer.
As only answer E is greater than $6,480, this must be the answer.
30 Dec 2014, 21:04
Kudos
Bookmarks
Answer = E. $6,489.60
Formula for compound interest
\(Amount = Principal(1 + \frac{RoI}{100})^{Number of Years}\)
\(= 6000(1+\frac{4}{100})^2 = 6000 * \frac{104}{100} * \frac{104}{100} = 6,489.60\)
Formula for compound interest
\(Amount = Principal(1 + \frac{RoI}{100})^{Number of Years}\)
\(= 6000(1+\frac{4}{100})^2 = 6000 * \frac{104}{100} * \frac{104}{100} = 6,489.60\)
