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Account M earns 4.3% interest, compounded annually. Account N earns 2.
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19 Mar 2021, 06:46
19 Mar 2021, 06:46
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Account M earns 4.3% interest, compounded annually.
Account N earns 2.9% interest, compounded annually.
Joe opens one account of each type on January 1, 2000.
A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.
Kudos for the right answer and explanation
Question part of the project GRE Quantitative Reasoning Daily Challenge - (2021) EDITION
GRE - Math Book
Account N earns 2.9% interest, compounded annually.
Joe opens one account of each type on January 1, 2000.
Quantity A |
Quantity B |
The amount of interest that Joe earns from leaving $X in account M for 6 years |
The amount of interest that Joe earns from leaving $Y in account N for 9 years |
A)The quantity in Column A is greater.
B)The quantity in Column B is greater.
C)The two quantities are equal.
D)The relationship cannot be determined from the information given.
Kudos for the right answer and explanation
Question part of the project GRE Quantitative Reasoning Daily Challenge - (2021) EDITION
GRE - Math Book
Re: Account M earns 4.3% interest, compounded annually. Account N earns 2.
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19 Mar 2021, 07:19
19 Mar 2021, 07:19
2
We are given %age of interest, duration in years.
We are given Principle in terms of $X & $Y.
Now no comparison can be done for the interest earned without knowing the absolute values of X and Y.
Hence Answer D
We are given Principle in terms of $X & $Y.
Now no comparison can be done for the interest earned without knowing the absolute values of X and Y.
Hence Answer D
Re: Account M earns 4.3% interest, compounded annually. Account N earns 2.
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24 Mar 2021, 03:21
24 Mar 2021, 03:21
1
This is a problem extremely prone to silly mistakes. Most of the people might skip the $Y in part B hence making the problem trickier.
Since the values of X and Y is not given, there can be no real comparison between the two compound interests.
For example, amount X can be 1 dollar and amount Y can be 1000 dollars and vice versa.
The compound interest in the former case will be higher for Y whereas in the latter case it will be higher for X
Hence option D is the correct option
Since the values of X and Y is not given, there can be no real comparison between the two compound interests.
For example, amount X can be 1 dollar and amount Y can be 1000 dollars and vice versa.
The compound interest in the former case will be higher for Y whereas in the latter case it will be higher for X
Hence option D is the correct option
