Last visit was: 24 Apr 2026, 17:34 It is currently 24 Apr 2026, 17:34
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
Peterparker2
User avatar
Joined: 18 Feb 2025
Last visit: 24 Apr 2026
Posts: 58
Own Kudos:
15
 [6]
Given Kudos: 14
Posts: 58
Kudos: 15
 [6]
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 23 Feb 2025, 03:44
Kudos
Add Kudos
6
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
B
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

55% (hard)

Question Stats:

65% (02:18) correct 35% (03:01) wrong based on 130 sessions

History

Date
Time
Result
Not Attempted Yet
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per annum. After few years, post Mr. X investment, Mr. Y deposited the same amount in another bank that offers 16% rate of interest per annum. If their investment become equal after 8 years from the time when Mr. X did the investment. Find the time difference between Mr. X's and Mr. Y's investment.

A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) 6 years
ShowHide Answer
Official Answer
B
User avatar
Krunaal
User avatar
Tuck School Moderator
Joined: 15 Feb 2021
Last visit: 21 Apr 2026
Posts: 853
Own Kudos:
912
 [3]
Given Kudos: 251
Status:Under the Square and Compass
Location: India
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
GPA: 5.78
WE:Marketing (Consulting)
Products:
My Reviews
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
Posts: 853
Kudos: 912
 [3]
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 23 Feb 2025, 08:07
2
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
Peterparker2
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per annum. After few years, post Mr. X investment, Mr. Y deposited the same amount in another bank that offers 16% rate of interest per annum. If their investment become equal after 8 years from the time when Mr. X did the investment. Find the time difference between Mr. X's and Mr. Y's investment.

A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) 6 years
Show more
In 8 years, $5000 at 10% rate of interest per annum will earn: \(5000*\frac{10}{100}*8\) = $4000 in interest.

Whereas, at 16% rate of interest per annum, earning $4000 as interest will take: \(5000*\frac{16}{100}*x=4000\) => x = 5 years.

Thus Mr. Y deposited $5000 after 3 years of Mr. X

Answer B.
User avatar
Peterparker2
User avatar
Joined: 18 Feb 2025
Last visit: 24 Apr 2026
Posts: 58
Own Kudos:
15
Given Kudos: 14
Posts: 58
Kudos: 15
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 23 Feb 2025, 09:39
Kudos
Add Kudos
Bookmarks
Bookmark this Post
How are the interests equal? In the question it stated that the investments are equal. Doesn't it mean only principal values are equal?
Krunaal
Peterparker2
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per annum. After few years, post Mr. X investment, Mr. Y deposited the same amount in another bank that offers 16% rate of interest per annum. If their investment become equal after 8 years from the time when Mr. X did the investment. Find the time difference between Mr. X's and Mr. Y's investment.

A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) 6 years
In 8 years, $5000 at 10% rate of interest per annum will earn: \(5000*\frac{10}{100}*8\) = $4000 in interest.

Whereas, at 16% rate of interest per annum, earning $4000 as interest will take: \(5000*\frac{16}{100}*x=4000\) => x = 5 years.

Thus Mr. Y deposited $5000 after 3 years of Mr. X

Answer B.
Show more
User avatar
Krunaal
User avatar
Tuck School Moderator
Joined: 15 Feb 2021
Last visit: 21 Apr 2026
Posts: 853
Own Kudos:
912
Given Kudos: 251
Status:Under the Square and Compass
Location: India
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
GPA: 5.78
WE:Marketing (Consulting)
Products:
My Reviews
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
Posts: 853
Kudos: 912
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 23 Feb 2025, 09:44
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Peterparker2
How are the interests equal? In the question it stated that the investments are equal. Doesn't it mean only principal values are equal?
Krunaal
Peterparker2
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per annum. After few years, post Mr. X investment, Mr. Y deposited the same amount in another bank that offers 16% rate of interest per annum. If their investment become equal after 8 years from the time when Mr. X did the investment. Find the time difference between Mr. X's and Mr. Y's investment.

A) 2 years
B) 3 years
C) 4 years
D) 5 years
E) 6 years
In 8 years, $5000 at 10% rate of interest per annum will earn: \(5000*\frac{10}{100}*8\) = $4000 in interest.

Whereas, at 16% rate of interest per annum, earning $4000 as interest will take: \(5000*\frac{16}{100}*x=4000\) => x = 5 years.

Thus Mr. Y deposited $5000 after 3 years of Mr. X

Answer B.
Show more
The first highlighted part signifies that their principal is equal, the second part signifies that after 8 years their investment (Principal + Interest) is equal, and since we already know that the principal was equal, for the investment to be equal the interest should be equal as well.
User avatar
Peterparker2
User avatar
Joined: 18 Feb 2025
Last visit: 24 Apr 2026
Posts: 58
Own Kudos:
15
Given Kudos: 14
Posts: 58
Kudos: 15
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 25 Feb 2025, 04:52
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi,
Just a little doubt. It says that the investments are equal after 8 years. I thought investment meant principal, not amount(interest+ prinicipal)

Krunaal
The first highlighted part signifies that their principal is equal, the second part signifies that after 8 years their investment (Principal + Interest) is equal, and since we already know that the principal was equal, for the investment to be equal the interest should be equal as well.
User avatar
Krunaal
User avatar
Tuck School Moderator
Joined: 15 Feb 2021
Last visit: 21 Apr 2026
Posts: 853
Own Kudos:
912
Given Kudos: 251
Status:Under the Square and Compass
Location: India
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
GPA: 5.78
WE:Marketing (Consulting)
Products:
My Reviews
Schools: Tuck '26 (WL) Ross '26 (A$$$$) Stern '26 (A) McCombs '26 (A$)
GMAT Focus 1: 755 Q90 V90 DI82
Posts: 853
Kudos: 912
Mr. X deposited 5000 $ in a bank that offers 10% rate of interest per 25 Feb 2025, 05:12
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Peterparker2
Hi,
Just a little doubt. It says that the investments are equal after 8 years. I thought investment meant principal, not amount(interest+ prinicipal)

Krunaal
The first highlighted part signifies that their principal is equal, the second part signifies that after 8 years their investment (Principal + Interest) is equal, and since we already know that the principal was equal, for the investment to be equal the interest should be equal as well.
Show more
After an investment, which is just principal initially, goes through a period of 8 years, the value of your investment increases => this increase is nothing but the interest you've earned in those 8 years. Hence, after 8 years, your Investment = Principal + Interest earned in those 8 years.
Moderators:
Bunuel
Math Expert
109818 posts
Krunaal
Tuck School Moderator
853 posts