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Joe invested $1000 at a compounded annual interest rate
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Updated on: 02 Sep 2019, 08:16
Updated on: 02 Sep 2019, 08:16
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65% (01:40) correct
34% (02:35) wrong based on 26 sessions
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Joe invested $1000 at a compounded annual interest rate. At the end of 12 years, the total value of the amount will be $4000. In how many years will the total amount become $8000?
(A) 15
(B) 18
(C) 20
(D) 24
(E) 30
(A) 15
(B) 18
(C) 20
(D) 24
(E) 30
Originally posted by chasing330 on 02 Sep 2019, 05:39.
Last edited by Carcass on 02 Sep 2019, 08:16, edited 2 times in total.
Last edited by Carcass on 02 Sep 2019, 08:16, edited 2 times in total.
Edited by Carcass
Re: Quantitative Reasoning - Compound Interest
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02 Sep 2019, 08:11
02 Sep 2019, 08:11
Expert Reply
Please follow the rules for posting on the board https://gre.myprepclub.com/forum/rules-for ... -1083.html
They are mandatory. Post a question which you have doubts under the right section. Thank you
They are mandatory. Post a question which you have doubts under the right section. Thank you
Re: Quantitative Reasoning - Compound Interest
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02 Sep 2019, 08:15
02 Sep 2019, 08:15
1
Expert Reply
In 12 years the investment quadrupled (from $1,000 to $4,000).
Thus, at the same rate compounded annually, it would need additional 12/2=6 years to double (from $4,000 to $8,000).
Therefore, 12+6=18 years are needed $1,000 to increase to $8,000.
Answer: B.
Thus, at the same rate compounded annually, it would need additional 12/2=6 years to double (from $4,000 to $8,000).
Therefore, 12+6=18 years are needed $1,000 to increase to $8,000.
Answer: B.
