Last visit was: 25 Apr 2026, 00:35 It is currently 25 Apr 2026, 00:35
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
User avatar
shehreenquayyum
User avatar
Joined: 31 May 2006
Last visit: 05 Nov 2006
Posts: 31
Own Kudos:
49
Posts: 31
Kudos: 49
An investor purchased a bond for p dollars on Monday. For a 18 Jun 2006, 17:43
Kudos
Add Kudos
Bookmarks
Bookmark this Post
An investor purchased a bond for p dollars on Monday. For a certain number of days, the value of the bond increased by r percent per day. After this period of constant increase, the bond decreased the next day by q dollars and the investor decided to sell the bond that day for v dollars. When did the investor sell the bond if r = 100{[(v+q)/p]^1/2 - 1} ?

Wednesday of the same week.
Thursday of the same week.
Friday of the same week.
Monday of the next week.
Tuesday of the next week.


ANY IDEAS??!



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Quantitative Questions Forum
Still interested in this question? Check out the "Best Topics" block below for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
User avatar
Professor
User avatar
Joined: 29 Dec 2005
Last visit: 09 Aug 2011
Posts: 562
Own Kudos:
184
Posts: 562
Kudos: 184
An investor purchased a bond for p dollars on Monday. For a 18 Jun 2006, 20:00
Kudos
Add Kudos
Bookmarks
Bookmark this Post
shehreenquayyum
An investor purchased a bond for p dollars on Monday. For a certain number of days, the value of the bond increased by r percent per day. After this period of constant increase, the bond decreased the next day by q dollars and the investor decided to sell the bond that day for v dollars. When did the investor sell the bond if r = 100{[(v+q)/p]^1/2 - 1} ?

Wednesday of the same week.
Thursday of the same week.
Friday of the same week.
Monday of the next week.
Tuesday of the next week.
Show more


initial price = p
price before decrease by q = p (1+r)^n
v = p (1+r)^n - q
v + q = p (1+r)^n


r = 100 {(v+q)/p)^1/2 - 1}

r = 100 [{p (1+r)^n /p}^1/2 - 1]

r = 100 [{(1+r)^n}^1/2 - 1]

now n should be 2. if n is 2 then, he sold the bond on Thursday of the same week.
User avatar
ywilfred
User avatar
Joined: 07 Jul 2004
Last visit: 06 Mar 2012
Posts: 1,987
Own Kudos:
2,051
Location: Singapore
Posts: 1,987
Kudos: 2,051
An investor purchased a bond for p dollars on Monday. For a 18 Jun 2006, 20:11
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Increment is compounded because the increment each day is based on the increased rate from the previous day.

So

v = p(1 + r/100)^n - q where n is number of days (n is 1 day before q dollars drop)

{100[(v+q)/p - 1]}^ 1/n = r

We know n = 2, so he must have sold on Thursday because the drop only comes in n+1 days.
User avatar
Zooroopa
User avatar
Joined: 09 Apr 2006
Last visit: 07 Sep 2008
Posts: 114
Own Kudos:
4
Location: Somewhere in Wisconsin!
Posts: 114
Kudos: 4
An investor purchased a bond for p dollars on Monday. For a 19 Jun 2006, 00:33
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Put n as the number of days. Calculate back and find that n = 2. The sale is made on the next day. This means three days transpired. So Thursday is the day on which he sold it.



Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Quantitative Questions Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!