GRE Prep 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
Track
Your Progress
Practice
Pays
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2941
Given Kudos: 1286
GPA: 3.39
If $10,000 is invested at x percent simple annual interest for n years
[#permalink]
29 Nov 2022, 08:21
29 Nov 2022, 08:21
1
Expert Reply
00:00
Question Stats:
66% (00:45) correct
33% (00:52) wrong based on 3 sessions
Hide Show timer Statistics
If $10,000 is invested at x percent simple annual interest for n years, which of the following represents the total amount of interest, in dollars, that will be earned by this investment in the n years?
A. \(10,000(x^n)\)
B. \(10,000(\frac{x}{100})^n\)
C. \(10,000n(\frac{x}{100})\)
D. \(10,000(1+\frac{x}{100})^n\)
E. \(10,000n(1+\frac{x}{100})\)
A. \(10,000(x^n)\)
B. \(10,000(\frac{x}{100})^n\)
C. \(10,000n(\frac{x}{100})\)
D. \(10,000(1+\frac{x}{100})^n\)
E. \(10,000n(1+\frac{x}{100})\)
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2941
Given Kudos: 1286
GPA: 3.39
Re: If $10,000 is invested at x percent simple annual interest for n years
[#permalink]
30 Nov 2022, 22:56
30 Nov 2022, 22:56
Expert Reply
The reasoning is from the following:
The formula for simple rate of interest is F = P(1+rt) where
F = future value
P = present value
r = rate
t = time
We can substitute x for r
n for t
and 10,000 in for P
F = 10,000(1+xn)
This formula will tell you the principal (original amount invested) + interest, but we only want interest, so the "1+" portion of the formula in unecessary. -->
F = 10,000(xn)
Now, we need to get the x into terms of a percentage, so we divide x by 100 -->
F = 10,000(n * x/100)
If we move the n outisde the brackets, we get -->
F = 10,000n(x/100) --> C
Answer: C
The formula for simple rate of interest is F = P(1+rt) where
F = future value
P = present value
r = rate
t = time
We can substitute x for r
n for t
and 10,000 in for P
F = 10,000(1+xn)
This formula will tell you the principal (original amount invested) + interest, but we only want interest, so the "1+" portion of the formula in unecessary. -->
F = 10,000(xn)
Now, we need to get the x into terms of a percentage, so we divide x by 100 -->
F = 10,000(n * x/100)
If we move the n outisde the brackets, we get -->
F = 10,000n(x/100) --> C
Answer: C
gmatclubot
Re: If $10,000 is invested at x percent simple annual interest for n years [#permalink]
30 Nov 2022, 22:56
Moderators:
