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QOTD#24 Carmen wants to open a special savings account thro
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30 Apr 2017, 14:10
30 Apr 2017, 14:10
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Question Stats:
53% (01:19) correct
46% (01:38) wrong based on 58 sessions
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Carmen wants to open a special savings account through her work. If Carmen invests $7,000 at 6 percent simple annual interest in January, and no other money is added to or removed from the account, which of the following is true?
Indicate all possible values.
A. At the end of April, Carmen will have earned $105 in interest.
B. At the end of the year, Carmen will have earned $420 in interest.
C. At the end of six months, Carmen will have earned $35 in interest.
D. At the end of three months, Carmen will have $7,105 in the account.
Indicate all possible values.
A. At the end of April, Carmen will have earned $105 in interest.
B. At the end of the year, Carmen will have earned $420 in interest.
C. At the end of six months, Carmen will have earned $35 in interest.
D. At the end of three months, Carmen will have $7,105 in the account.
Drill 4
Question: 10
Page: 323
Question: 10
Page: 323
Re: QOTD#24 Carmen wants to open a special savings account thro
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04 May 2017, 01:19
04 May 2017, 01:19
1
Expert Reply
Explanation
To calculate the interest earned, multiply the principal by the annual interest rate: in one year, Carmen will earn $7000 × 0.06 = $420 in interest, so choice (B) works.
To calculate her interest for any part of the year, divide $420 by the appropriate fraction of a year. At the end of April, \(\frac{1}{3}\) of the year has passed, so Carmen will have earned \(\frac{1}{3} \times $420 = $140\); eliminate choice A.
At the end of six months, Carmen will have earned \(\frac{1}{2} \times $420 = $210\); eliminate choice (C).
At the end of three months, \(\frac{1}{4}\) of the year has passed, so Carmen has earned \(\frac{1}{4} \times $420 = $105\); there will be a total of $7000 + $105 = $7105 in the account,
so choice (D) works.
To calculate the interest earned, multiply the principal by the annual interest rate: in one year, Carmen will earn $7000 × 0.06 = $420 in interest, so choice (B) works.
To calculate her interest for any part of the year, divide $420 by the appropriate fraction of a year. At the end of April, \(\frac{1}{3}\) of the year has passed, so Carmen will have earned \(\frac{1}{3} \times $420 = $140\); eliminate choice A.
At the end of six months, Carmen will have earned \(\frac{1}{2} \times $420 = $210\); eliminate choice (C).
At the end of three months, \(\frac{1}{4}\) of the year has passed, so Carmen has earned \(\frac{1}{4} \times $420 = $105\); there will be a total of $7000 + $105 = $7105 in the account,
so choice (D) works.
Re: QOTD#24 Carmen wants to open a special savings account thro
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25 Oct 2024, 21:44
25 Oct 2024, 21:44
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Thanks to another GRE Prep Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).
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