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Elliot and Faye each invested $5,000 each in two different banks. Elli
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06 Apr 2023, 04:02
06 Apr 2023, 04:02
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75% (01:48) correct
25% (01:41) wrong based on 12 sessions
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Elliot and Faye each invested $5,000 each in two different banks. Elliot’s bank gives an annual interest of 12% compounded monthly on the investment and Faye’s bank gives an annual interest of 12% compounded quarterly. After 6 months Elliot earns a total interest of E, and Faye earns a total interest of F.
A. Quantity A is greater.
B. Quantity B is greater.
C. The two quantities are equal
D. The relationship cannot be determined from the information given.
Post A Detailed Correct Solution For The Above Questions And Get A Kudos.
Question From Our Project: Free GRE Prep Club Tests in Exchange for 20 Kudos
\(\Longrightarrow\) GRE - Quant Daily Topic-wise Challenge
\(\Longrightarrow\) GRE SINGLE & COMPOUND INTEREST
Quantity A |
Quantity B |
E |
F |
A. Quantity A is greater.
B. Quantity B is greater.
C. The two quantities are equal
D. The relationship cannot be determined from the information given.
Post A Detailed Correct Solution For The Above Questions And Get A Kudos.
Question From Our Project: Free GRE Prep Club Tests in Exchange for 20 Kudos
\(\Longrightarrow\) GRE - Quant Daily Topic-wise Challenge
\(\Longrightarrow\) GRE SINGLE & COMPOUND INTEREST
Re: Elliot and Faye each invested $5,000 each in two different banks. Elli
[#permalink]
06 Apr 2023, 21:43
06 Apr 2023, 21:43
1
General Formula : A = P(1 + (R/n)/100)^nt
n: Compounded annually (1) or quarterly(4) or half yearly(2) or monthly(12)
t: interest calculated for no of years
Elliot
A = 5000(1 + (12/12)/100)^12(0.5) = 5000(1.01)^6
Faye
F = 5000(1 + (12/4)/100)^3*0.5 = 5000(1.03)^1.5
We cannot calculate this but for Compound Interest if interest is calculated monthly >> interest calculated quarterly or more if P and R are same
Option A
n: Compounded annually (1) or quarterly(4) or half yearly(2) or monthly(12)
t: interest calculated for no of years
Elliot
A = 5000(1 + (12/12)/100)^12(0.5) = 5000(1.01)^6
Faye
F = 5000(1 + (12/4)/100)^3*0.5 = 5000(1.03)^1.5
We cannot calculate this but for Compound Interest if interest is calculated monthly >> interest calculated quarterly or more if P and R are same
Option A
gmatclubot
Re: Elliot and Faye each invested $5,000 each in two different banks. Elli [#permalink]
06 Apr 2023, 21:43
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