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# What is the final balance of a bank account after two years if the sta

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Math Expert
Joined: 02 Sep 2009
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What is the final balance of a bank account after two years if the sta  [#permalink]

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29 Oct 2018, 04:33
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15% (low)

Question Stats:

86% (00:46) correct 14% (01:06) wrong based on 38 sessions

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What is the final balance of a bank account after two years if the starting balance is $1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited. A.$50
B. $100 C.$1,050
D. $1,100 E.$1,150

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Joined: 15 Feb 2017
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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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29 Oct 2018, 04:39
What is the final balance of a bank account after two years if the starting balance is $1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited. A.$50
B. $100 C.$1,050
D. $1,100 E.$1,150

Amount = P + (P *n * r)/100
= 1000 + ( 1000*5*2)/100
= 1100$Choice D Thanks Sent from my Lenovo K33a42 using GMAT Club Forum mobile app _________________ IMPOSSIBLE IS JUST AN OPINION GMAT Club Legend Joined: 18 Aug 2017 Posts: 5734 Location: India Concentration: Sustainability, Marketing GPA: 4 WE: Marketing (Energy and Utilities) Re: What is the final balance of a bank account after two years if the sta [#permalink] ### Show Tags 29 Oct 2018, 04:44 What is the final balance of a bank account after two years if the starting balance is$1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited.

A. $50 B.$100
C. $1,050 D.$1,100
E. $1,150 A = P(1 + rt) =1000(1+.05*2) =1100 IMO D Board of Directors Status: QA & VA Forum Moderator Joined: 11 Jun 2011 Posts: 4870 Location: India GPA: 3.5 WE: Business Development (Commercial Banking) Re: What is the final balance of a bank account after two years if the sta [#permalink] ### Show Tags 29 Oct 2018, 09:03 Bunuel wrote: What is the final balance of a bank account after two years if the starting balance is$1,000 at an annual rate of 5%, using simple interest? Assume no other money was withdrawn or deposited.

A. $50 B.$100
C. $1,050 D.$1,100
E. $1,150 $$SI = \frac{1000*2*5}{100}$$ So, $$SI = 100$$ Thus, Amount available at the end of 2 years is$1,100 , Answer must be (D)
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Re: What is the final balance of a bank account after two years if the sta  [#permalink]

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30 Oct 2018, 03:35

Solution

Given:
• Starting balance = $1,000 • Annual rate of simple interest = 5% • No other money was withdrawn or deposited To find: • The final balance after two years Approach and Working: • Balance at the end of 1 year =$1,000 + 5% of $1,000 =$1,000 + $50 =$1,050
• Balance at the end of two years = $1,050 + 5% of 1,000 =$1,100

Hence, the correct answer is Option D

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Re: What is the final balance of a bank account after two years if the sta   [#permalink] 30 Oct 2018, 03:35
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