NEW HERE? LEARN MORE
closeclose
Last visit was: 24 Apr 2024, 19:09 It is currently 24 Apr 2024, 19:09
Decision Tracker
My Rewards
New posts
New comers' posts

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

What simple interest rate will Susan need to secure to make $2,500 in

SORT BY:
Date
Kudos
Tags:
Find Similar Topics 
Show Tags
Hide Tags
User avatar
L
Bunuel
Math Expert
Joined: 02 Sep 2009
Posts: 92900
Own Kudos [?]: 618823 [2]
Given Kudos: 81588
Send PM
CAT Tests Forum Quiz Mode
What simple interest rate will Susan need to secure to make $2,500 in [#permalink] New post   29 Jul 2019, 06:09
1
Kudos
1
Bookmarks
Expert Reply
00:00
A
B
C
D
E

Difficulty:

5% (low)

Question Stats:

93% (00:45) correct 7% (01:16) wrong based on 44 sessions
Hide Show timer Statistics
What simple interest rate will Susan need to secure to make $2,500 in interest on a $10,000 principal over 5 years?

A. 4%
B. 5%
C. 6%
D. 7%
E. 8%
ShowHide Answer
Official Answer
B
User avatar
L
TheNightKing
VP
VP
Joined: 18 Dec 2017
Posts: 1170
Own Kudos [?]: 991 [0]
Given Kudos: 421
Location: United States (KS)
GMAT 1: 600 Q46 V27
Send PM
Re: What simple interest rate will Susan need to secure to make $2,500 in [#permalink] New post   29 Jul 2019, 09:19
Bunuel wrote:
What simple interest rate will Susan need to secure to make $2,500 in interest on a $10,000 principal over 5 years?

A. 4%
B. 5%
C. 6%
D. 7%
E. 8%


2500/5 is 500 per year. Since it is simple interest, to earn 500 is basically 5% of 10,000. (10% is 1000 so 5% is 500). IMO B
User avatar
L
Kinshook
GMAT Club Legend
GMAT Club Legend
Joined: 03 Jun 2019
Posts: 5343
Own Kudos [?]: 3964 [1]
Given Kudos: 160
Location: India
Schools: HBS '22 CBS '22 Wharton '22
GMAT 1: 690 Q50 V34
WE:Engineering (Transportation)
Send PM
Reviews Badge
What simple interest rate will Susan need to secure to make $2,500 in [#permalink] New post   29 Jul 2019, 09:28
1
Kudos
Bunuel wrote:
What simple interest rate will Susan need to secure to make $2,500 in interest on a $10,000 principal over 5 years?

A. 4%
B. 5%
C. 6%
D. 7%
E. 8%


Principle = $10,000
Interest per annum = $2500/5 = $500
Simple Interest rate = 500/10000 = 5%

IMO B
User avatar
S
such8
Manager
Manager
Joined: 05 Jul 2019
Posts: 73
Own Kudos [?]: 27 [0]
Given Kudos: 15
Location: India
Concentration: Strategy, Healthcare
Schools: HEC '22 NUS '22 (D) Marshall '22 (D) ISB '21 (D)
Send PM
Re: What simple interest rate will Susan need to secure to make $2,500 in [#permalink] New post   29 Jul 2019, 09:29
I = P*R*T

P = 10,000
T = 5 years
I = 2500

R=I/P*T
R=2500/(10000*5) = 2500/50000 = 0.05 = 5%

Hence, B is the correct answer
User avatar
L
ScottTargetTestPrep
Target Test Prep Representative
Joined: 14 Oct 2015
Status:Founder & CEO
Affiliations: Target Test Prep
Posts: 18756
Own Kudos [?]: 22049 [0]
Given Kudos: 283
Location: United States (CA)
Send PM
Re: What simple interest rate will Susan need to secure to make $2,500 in [#permalink] New post   06 Aug 2019, 17:57
Expert Reply
Bunuel wrote:
What simple interest rate will Susan need to secure to make $2,500 in interest on a $10,000 principal over 5 years?

A. 4%
B. 5%
C. 6%
D. 7%
E. 8%



Using the simple interest formula, Interest = Principal x Rate x Time, and letting n = the interest rate, we can create the equation:

2,500 = 10,000 x n/100 x 5

500/10000 = n/100

5/100 = n/100

n = 5

Answer: B
GMAT Club Bot
gmatclubot
Re: What simple interest rate will Susan need to secure to make $2,500 in [#permalink]
06 Aug 2019, 17:57
Moderators:
Bunuel
Math Expert
92900 posts
yashikaaggarwal
Senior Moderator - Masters Forum
3137 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne
Main navigation
GMAT Resources
Partners
MBA Resources
www.gmac.com|www.mba.com | | GMAT Club Rules | Terms and Conditions