Last visit was: 05 Nov 2024, 04:32 It is currently 05 Nov 2024, 04:32

Close

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

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GRE score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Verbal Expert
Joined: 18 Apr 2015
Posts: 29891
Own Kudos [?]: 36119 [3]
Given Kudos: 25919
Send PM
Verbal Expert
Joined: 18 Apr 2015
Posts: 29891
Own Kudos [?]: 36119 [0]
Given Kudos: 25919
Send PM
avatar
Retired Moderator
Joined: 16 Oct 2019
Posts: 63
Own Kudos [?]: 174 [2]
Given Kudos: 21
Send PM
Retired Moderator
Joined: 10 Apr 2015
Posts: 6218
Own Kudos [?]: 12176 [2]
Given Kudos: 136
Send PM
Re: If money is invested at r percent interest, compounded annua [#permalink]
2
Carcass wrote:
If money is invested at r percent interest, compounded annually, the amount of the investment will double in approximately \(\frac{70}{r}\) years. If Pat's parents invested $5,000 in a long-term bond that pays 8 percent interest, compounded annually, what will be the approximate total amount of the investment 18 years later, when Pat is ready for college?

(A) $20000
(B) $15000
(C) $12000
(D) $10000
(E) $9000


GIVEN: At r percent interest, the amount of the investment will double in approximately 70/r years
So, at 8 percent interest, the time for the investment to double = 70/89
So, the investment will double every 9 years

We can now create a growth table:
Initially, the investment is worth $5,000
After 9 years, the investment is worth $10,000
After 18 years, the investment is worth $20,000

Answer: A

Cheers,
Brent
User avatar
GRE Prep Club Legend
GRE Prep Club Legend
Joined: 07 Jan 2021
Posts: 5006
Own Kudos [?]: 74 [0]
Given Kudos: 0
Send PM
Re: If money is invested at r percent interest, compounded annua [#permalink]
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.
Prep Club for GRE Bot
Re: If money is invested at r percent interest, compounded annua [#permalink]
Moderators:
GRE Instructor
77 posts
GRE Forum Moderator
37 posts
Moderator
1111 posts
GRE Instructor
228 posts

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne