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19 Aug 2020, 02:17
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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:
66% (02:18) correct
34%
(02:12)
wrong
based on 515
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Ten years ago, Dorothy deposited a certain amount of money in Account A at a 3% simple annual interest rate. At the same time, Marla deposited another amount in Account B at a 4% simple annual interest rate. If there were no withdrawals or deposits during the 10 years since the deposits, is the current interest in A greater than that in B?
(1) The amount invested in Account A was $1,000 more than the amount invested in Account B.
(2) The investment in Account A obtained interest of $300 last year.
Are You Up For the Challenge: 700 Level Questions
(1) The amount invested in Account A was $1,000 more than the amount invested in Account B.
(2) The investment in Account A obtained interest of $300 last year.
Are You Up For the Challenge: 700 Level Questions
yashikaaggarwal
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19 Aug 2020, 02:35
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Statement 1:
Let Marla deposited X amount at 4% interest annually
And Dorothy deposited X+1000 amount @3% interest.
Though Dorothy deposited 1000 value extra, the interest they bear can be equal if deposited 3000 amount by Marla at 4% interest and 3000+1000 by Dorothy at 3% interest.
Such as;
X*4/100 = (X+1000)3/100
4x = 3x+3000
X = 3000
Or Marla can submit less amount than 3000, no particular answer.
(Insufficient)
Statement 2: DOROTHY obtained 300$ per year
The deposited amount = interest = amount*rate/100
300 = AmountA*3/100
10,000 = Amount
But no information about marla.
(Insufficient)
Combining both:
Dorothy deposited 10,000
Marla deposited 9,000
Dorothy interest is higher.
(Sufficient)
Answer is C
Posted from my mobile device
Let Marla deposited X amount at 4% interest annually
And Dorothy deposited X+1000 amount @3% interest.
Though Dorothy deposited 1000 value extra, the interest they bear can be equal if deposited 3000 amount by Marla at 4% interest and 3000+1000 by Dorothy at 3% interest.
Such as;
X*4/100 = (X+1000)3/100
4x = 3x+3000
X = 3000
Or Marla can submit less amount than 3000, no particular answer.
(Insufficient)
Statement 2: DOROTHY obtained 300$ per year
The deposited amount = interest = amount*rate/100
300 = AmountA*3/100
10,000 = Amount
But no information about marla.
(Insufficient)
Combining both:
Dorothy deposited 10,000
Marla deposited 9,000
Dorothy interest is higher.
(Sufficient)
Answer is C
Posted from my mobile device
19 Aug 2020, 04:04
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Solution
Step 1: Analyse Question Stem
- • Based on the given information let’s make the following table:
• We need to find out if current interest in A is greater than that in B.
- o Or, we need to find if \(\frac{3a}{10} > \frac{4b}{10} \)
- Or, if \( 3a > 4b ⟹ \frac{a}{b} > \frac{4}{3}\)
Step 2: Analyse Statements Independently (And eliminate options) – AD/BCE
Statement 1: The amount invested in Account A was $1,000 more than the amount invested in Account B.
- • According to this statement: \(a = b + 1000 ⟹ \frac{a}{b} = 1 + \frac{1000}{b}\)
• However, we don’t know the value of b so we cannot find if \( \frac{a}{b} > \frac{4}{3}\) or not.
Statement 2: The investment in Account A obtained interest of $300 last year.
- • According to this statement: \(\frac{a*1*3}{100} = $300 ⟹ a = $10,000\)
• However, we don’t know the value of b so, we cannot find if \( \frac{a}{b} > \frac{4}{3}\) or not.
Step 3: Analyse Statements by combining.
- • From statement 1: \( a = b + 1000………..Eq.(i)\)
• From statement 2: \( a = $10000…..Eq.(ii)\)
• On combining two statements,
- o We know the value of a.
o With the eq.(i) and Eq.(ii), we can easily find out the value of b,
- Then we can find out if 3a > 4b or not.
