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.
Elliot and Faye each invested $5,000 each in two different banks. Elli
[#permalink]
06 Apr 2023, 04:02
06 Apr 2023, 04:02
1
Expert Reply
1
Bookmarks
00:00
Question Stats:
76% (01:48) correct
23% (02:08) wrong based on 34 sessions
Hide Show timer Statistics
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
2
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
Re: Elliot and Faye each invested $5,000 each in two different banks. Elli
[#permalink]
17 Mar 2025, 23:31
17 Mar 2025, 23:31
Hello from the GRE Prep Club BumpBot!
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).
Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
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).
Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
