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07 May 2021, 05:45
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D
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Difficulty:
85%
(hard)
Question Stats:
53% (02:36) correct
47%
(02:48)
wrong
based on 93
sessions
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Julie put half of her savings in a savings account that pays an annual simple interest and half in a savings account that pays an annual compound interest. After two years she earned $120 and $126 from the simple interest account and the compound interest account respectively. If the interest rates for both accounts were the same, what was the amount of Julie's initial savings?
(A) 600
(B) 720
(C) 1080
(D) 1200
(E) 1440
(A) 600
(B) 720
(C) 1080
(D) 1200
(E) 1440
08 May 2021, 09:00
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Bunuel
$120 for 2 years = $60 per year.
Extra $6 yearned with the compound interest is the percent yearned on percent. So, $6 is yearned on $60, which means that the interest = 10%.
This on the other hand means that half of the savings = 60*10 = $600. Twice of that = $1,200.
Answer: D.
General Discussion
07 May 2021, 05:58
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120/2 = 60 This is how much Julie earns per year on her simple investment.
This will also be the same amount she earns for the first year on her compound investment.
126-60 = 66 66 is the amount her compound investment makes in the second year.
The difference between the two years is 6.
So her interest rate is: 6/60 = 10%
As the interest rate is 10% and that she got 60 from each of her investments in the first year, she put 600 into each savings account.
600+600 = 1200
Answer D
This will also be the same amount she earns for the first year on her compound investment.
126-60 = 66 66 is the amount her compound investment makes in the second year.
The difference between the two years is 6.
So her interest rate is: 6/60 = 10%
As the interest rate is 10% and that she got 60 from each of her investments in the first year, she put 600 into each savings account.
600+600 = 1200
Answer D
