Last visit was: 24 Apr 2026, 23:06 It is currently 24 Apr 2026, 23:06
Home
Messages
Tests
Schools
Events
Close
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
Your Progress

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
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
guddo
User avatar
Joined: 25 May 2021
Last visit: 24 Apr 2026
Posts: 1,020
Own Kudos:
11,355
 [10]
Given Kudos: 32
Posts: 1,020
Kudos: 11,355
 [10]
A certain club made an investment of k dollars at a simple annual 28 Jan 2024, 10:42
Kudos
Add Kudos
10
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
D
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

5% (low)

Question Stats:

86% (00:51) correct 14% (01:03) wrong based on 366 sessions

History

Date
Time
Result
Not Attempted Yet
A certain club made an investment of k dollars at a simple annual interest rate of m percent. Which of the following is equivalent to the amount of interest, in dollars, the club would earn after n years?

A. kmn

B. 100kn/m

C. kn/(100m)

D. kmn/100

E. 100kmn


Show Spoiler
Attachment:
2024-01-28_21-33-31.png
2024-01-28_21-33-31.png [ 36.33 KiB | Viewed 5293 times ]
ShowHide Answer
Official Answer
D
Using official mocks already? Add GMAT Club Tests for harder practice, analytics, and explanations without overlapping Official Guide or official mock questions. Try it now →
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,818
Own Kudos:
811,095
 [2]
Given Kudos: 105,873
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,818
Kudos: 811,095
 [2]
A certain club made an investment of k dollars at a simple annual 28 Jan 2024, 10:44
1
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
guddo
A certain club made an investment of k dollars at a simple annual interest rate of m percent. Which of the following is equivalent to the amount of interest, in dollars, the club would earn after n years?

A. kmn

B. 100kn/m

C. kn/(100m)

D. kmn/100

E. 100kmn


Show Spoiler
Attachment:
2024-01-28_21-33-31.png
Show more

In 1 year k dollars at a simple annual interest rate of m percent would earn k*m/100 dollars;
In 2 years k dollars at a simple annual interest rate of m percent would earn k*m/100*2 dollars;
In 3 years k dollars at a simple annual interest rate of m percent would earn k*m/100*3 dollars;
...
In n years k dollars at a simple annual interest rate of m percent would earn k*m/100*n = kmn/100 dollars.

Answer: D.
User avatar
gmatophobia
User avatar
Quant Chat Moderator
Joined: 22 Dec 2016
Last visit: 19 Apr 2026
Posts: 3,173
Own Kudos:
11,463
Given Kudos: 1,862
Location: India
Concentration: Strategy, Leadership
Posts: 3,173
Kudos: 11,463
A certain club made an investment of k dollars at a simple annual 28 Jan 2024, 10:45
Kudos
Add Kudos
Bookmarks
Bookmark this Post
guddo
A certain club made an investment of k dollars at a simple annual interest rate of m percent. Which of the following is equivalent to the amount of interest, in dollars, the club would earn after n years?

A. kmn

B. 100kn/m

C. kn/(100m)

D. kmn/100

E. 100kmn


Show Spoiler
Attachment:
2024-01-28_21-33-31.png
Show more

Interest Earned = Principal * Time * Rate/100

Interest Earned = k * n * m/100

Option D
User avatar
nosaj
User avatar
Joined: 01 Nov 2023
Last visit: 12 Jul 2025
Posts: 50
Own Kudos:
31
Given Kudos: 77
Posts: 50
Kudos: 31
A certain club made an investment of k dollars at a simple annual 11 Nov 2024, 23:50
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Bunuel, I keep making silly mistakes in percentages.

When I read m percent, i translated this to m/100 * 100... therefore I put k*m*n.

What is the gap in my understanding that I am missing?

I only shifted to the above BECAUSE in some other questions often if you don't multiply by the extra 100... it is wrong.
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 24 Apr 2026
Posts: 109,818
Own Kudos:
811,095
Given Kudos: 105,873
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 109,818
Kudos: 811,095
A certain club made an investment of k dollars at a simple annual 12 Nov 2024, 00:04
Kudos
Add Kudos
Bookmarks
Bookmark this Post
nosaj
Bunuel, I keep making silly mistakes in percentages.

When I read m percent, i translated this to m/100 * 100... therefore I put k*m*n.

What is the gap in my understanding that I am missing?

I only shifted to the above BECAUSE in some other questions often if you don't multiply by the extra 100... it is wrong.
Show more

Note that "per cent" from Latin literally means "per one hundred" or "out of one hundred", so for example, \(x\%\) is \(\frac{x}{100}\) (\(x\) per one hundred) and say \(5\%\) is \(\frac{5}{100} = 0.05\) (5 out of one hundred). On the other hand, we can write 0.05 as \(0.05*100\% = 5\%\) and say 20 as \(20*100\% = 2000\%\).

Basically, "%" symbol, or the word "percent", just means "per 100", or algebraically, "/100". Thus:

To drop "%" symbol, so to convert the percentage into a ratio, just divide by 100: \(m\% = \frac{m}{100}\). For example, \(10\%=\frac{10}{100}=\frac{1}{10}=0.1\) and \(400\%=\frac{400}{100}=4\).

To get "%" symbol, so to convert the ratio into a percentage, just multiply by 100%: \(n=n*100\%\) (100% is just 100/100 = 1, so we are essentially multiplying by 1). For example, \(0.4=0.4*100\%=40\%\) and \(15=15*100\%=1500\%\).

To sum up: \(x\%\) and \(\frac{x}{100}\) are just two different ways of writing the same thing: as a percentage and as a ratio.

4. Percents and Iterest




For more check:

Hope it helps.
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,978
Own Kudos:
1,117
Posts: 38,978
Kudos: 1,117
A certain club made an investment of k dollars at a simple annual 24 Nov 2025, 17:36
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Automated notice from GMAT Club BumpBot:

A member just gave Kudos to this thread, showing it’s still useful. I’ve bumped it to the top so more people can benefit. Feel free to add your own questions or solutions.

This post was generated automatically.
Moderators:
Bunuel
Math Expert
109818 posts
Krunaal
Tuck School Moderator
853 posts