GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 22 Jun 2018, 07:43

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.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

Will the interest earned on an investment of $4360 in fund X be greate

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Expert Post
Math Expert
User avatar
V
Joined: 02 Sep 2009
Posts: 46280
Will the interest earned on an investment of $4360 in fund X be greate [#permalink]

Show Tags

New post 29 Feb 2016, 11:01
00:00
A
B
C
D
E

Difficulty:

  45% (medium)

Question Stats:

54% (00:47) correct 46% (00:39) wrong based on 135 sessions

HideShow timer Statistics

Will the interest earned on an investment of $4360 in fund X be greater than the same investment in fund Y if the period of investment is 3 years for each?

(1) In the first year, type X offers an interest payment of $152 for every $1000 invested and type Y offers an interest payment of $73 for every $500 invested.
(2) Type X offers a rate of simple interest of 15.2% per annum and type Y offers a rate of interest of 14.6% per annum compounded annually.

_________________

New to the Math Forum?
Please read this: Ultimate GMAT Quantitative Megathread | All You Need for Quant | PLEASE READ AND FOLLOW: 12 Rules for Posting!!!

Resources:
GMAT Math Book | Triangles | Polygons | Coordinate Geometry | Factorials | Circles | Number Theory | Remainders; 8. Overlapping Sets | PDF of Math Book; 10. Remainders | GMAT Prep Software Analysis | SEVEN SAMURAI OF 2012 (BEST DISCUSSIONS) | Tricky questions from previous years.

Collection of Questions:
PS: 1. Tough and Tricky questions; 2. Hard questions; 3. Hard questions part 2; 4. Standard deviation; 5. Tough Problem Solving Questions With Solutions; 6. Probability and Combinations Questions With Solutions; 7 Tough and tricky exponents and roots questions; 8 12 Easy Pieces (or not?); 9 Bakers' Dozen; 10 Algebra set. ,11 Mixed Questions, 12 Fresh Meat

DS: 1. DS tough questions; 2. DS tough questions part 2; 3. DS tough questions part 3; 4. DS Standard deviation; 5. Inequalities; 6. 700+ GMAT Data Sufficiency Questions With Explanations; 7 Tough and tricky exponents and roots questions; 8 The Discreet Charm of the DS; 9 Devil's Dozen!!!; 10 Number Properties set., 11 New DS set.


What are GMAT Club Tests?
Extra-hard Quant Tests with Brilliant Analytics

Manager
Manager
avatar
S
Joined: 04 Apr 2015
Posts: 110
Re: Will the interest earned on an investment of $4360 in fund X be greate [#permalink]

Show Tags

New post 02 Mar 2016, 21:05
IMO D

Both gives the rate of interest from which we can find out the better value
Expert Post
Math Expert
User avatar
V
Joined: 02 Aug 2009
Posts: 5923
Re: Will the interest earned on an investment of $4360 in fund X be greate [#permalink]

Show Tags

New post 02 Mar 2016, 21:25
varundixitmro2512 wrote:
IMO D

Both gives the rate of interest from which we can find out the better value


Hi,
statement 1 does not give you the interest rate but interest earned..
We do not Know from 1 that the two or any of them is Simple Interest or Compound Interest and say it is compounded monthly or quarterly or annually..
so there may be possiblity that in longer run Y takes over X..
say the rate is 10% compunded yearly and one quarterly..
at end of first year.. the rates become 1.1 and 1.102 respectiveky ..
but in three years, it becomes 1.33 and 1.34, sice these are compounded..
so we cannot say for sure what will be the effective rates after
so ! amay not be sufficient

_________________

Absolute modulus :http://gmatclub.com/forum/absolute-modulus-a-better-understanding-210849.html#p1622372
Combination of similar and dissimilar things : http://gmatclub.com/forum/topic215915.html


GMAT online Tutor

LBS Thread Master
avatar
B
Joined: 13 Jan 2015
Posts: 111
Location: United Kingdom
Concentration: Other, General Management
Schools: LBS '19 (WL)
GMAT 1: 690 Q48 V36
Re: Will the interest earned on an investment of $4360 in fund X be greate [#permalink]

Show Tags

New post 03 Mar 2016, 10:02
I would probably say B.

Stmt 1 - only tells us about interest gained in the first year, we do not know what the second or third year will offer - X could be higher, Y could be higher - insufficient

Stmt 2 - X has an SI rate of 15.2% and Y has an CI rate of 14.6%
Lets take $100 and work this out
X Y
SI -15.2% CI - 14.6%
Yr 1 115.2 114.6
Yr 2 130.4 131.33
Yr 3 145.6 150.51

so you can see that Y, with the compounded rate is higher
PS - I used a calculator to getthe actual figures
PS Forum Moderator
avatar
D
Joined: 25 Feb 2013
Posts: 1142
Location: India
GPA: 3.82
GMAT ToolKit User Premium Member Reviews Badge
Re: Will the interest earned on an investment of $4360 in fund X be greate [#permalink]

Show Tags

New post 23 Sep 2017, 07:07
Bunuel wrote:
Will the interest earned on an investment of $4360 in fund X be greater than the same investment in fund Y if the period of investment is 3 years for each?

(1) In the first year, type X offers an interest payment of $152 for every $1000 invested and type Y offers an interest payment of $73 for every $500 invested.
(2) Type X offers a rate of simple interest of 15.2% per annum and type Y offers a rate of interest of 14.6% per annum compounded annually.


To calculate interest, we need to know Rate of Interest and whether it is compound or simple and what is the frequency

Statement 1: Gives the rate but we don't know whether the rate is simple or compound and the frequency. Hence Insufficient

Statement 2: Gives the rate, mentions whether the rate is simple or compound and mentions frequency. Hence Sufficient

Option B
Re: Will the interest earned on an investment of $4360 in fund X be greate   [#permalink] 23 Sep 2017, 07:07
Display posts from previous: Sort by

Will the interest earned on an investment of $4360 in fund X be greate

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.