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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1053
GPA: 3.39
Last year a certain bond with a face value of $5,000 yielded 8 percent
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17 Dec 2022, 10:50
17 Dec 2022, 10:50
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Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1053
GPA: 3.39
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent
[#permalink]
19 Dec 2022, 09:27
19 Dec 2022, 09:27
1
Expert Reply
Interest = 0.08*5000 = 0.065*selling price --> selling price = 0.08*5000/0.065 --> selling price = ~6,154
Answer: E.
Answer: E.
Retired Moderator
Joined: 10 Apr 2015
Posts: 6218
Given Kudos: 136
Re: Last year a certain bond with a face value of $5,000 yielded 8 percent
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02 Jan 2023, 13:11
02 Jan 2023, 13:11
GeminiHeat wrote:
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest
8% of $5,000 = $400
So, interest = $400
If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
Let x = the bond's selling price
So, $400 = 6.5% of x
In other words: $400 = 0.065x
Solve: x = 400/0.065 ≈ 6154
Answer: E
