GRE Question of the Day (May 10th)

By - May 10, 08:37 AM Comments [0]

Math

If P dollars borrowed or invested for for t years at the interest rate r compounded n times per year, then the future value (a) will be A=P(1+rn)nt

Two individuals, M and N invested P dollars with the following conditions and both gained the same future value at the end of the investment period:

M invested $P at the interest rate r5100 for 6 years compounded 4 times per year

N invested $P at the interest rate r+5100 for 4 years compounded 6 times per year

Quantity A
Quantity B
r
25


A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.

 

Correct Answer - C  - (click and drag your mouse to see the answer)

Question Discussion & Explanation

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