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.
Retired Moderator
Joined: 16 Apr 2020
Status:Founder & Quant Trainer
Affiliations: Prepster Education
Posts: 1546
Given Kudos: 172
Location: India
WE:Education (Education)
Carcass invested $2,000 at a ceratin rate of interest compounded semi-
[#permalink]
02 Sep 2021, 03:59
02 Sep 2021, 03:59
2
1
9
Bookmarks
00:00
Question Stats:
37% (01:53) correct
62% (02:42) wrong based on 40 sessions
Hide Show timer Statistics
Carcass invested $2,000 at a certain rate of interest compounded semi-annually. At the end of 5 years, the total value of the amount will be $6,000.
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
Quantity A |
Quantity B |
Number of years in which total amount will become $54,000 |
15 |
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
Carcass invested $2,000 at a ceratin rate of interest compounded semi-
[#permalink]
02 Sep 2021, 18:02
02 Sep 2021, 18:02
5
1
Bookmarks
Start by writing out the equation:
\(2000\)\((1+\)\(\frac{i}{200}\)\()^{10}\)\(=6000\)
Now divide both sides by 2000:
\((1+\)\(\frac{i}{200}\)\()^{10}\)\(=3\)
We want to manipulate the equation in order to get the exponent to become 30, which represents 15 years of investment semi-annually.
To do this, cube both sides of the equation:
\([\)\((1+\)\(\frac{i}{200}\)\()^{10}\)\(]^3\)\(=(3)^3\)
\((1+\)\(\frac{i}{200}\)\()^{30}\)\(=27\)
Now multiply both sides by 2000 again:
\(2000\)\((1+\)\(\frac{i}{200}\)\()^{30}\)\(=54000\)
We have that, after 15 years, the $2000 investment compounded semiannually will be $54000.
Therefore, the answer is C
\(2000\)\((1+\)\(\frac{i}{200}\)\()^{10}\)\(=6000\)
Now divide both sides by 2000:
\((1+\)\(\frac{i}{200}\)\()^{10}\)\(=3\)
We want to manipulate the equation in order to get the exponent to become 30, which represents 15 years of investment semi-annually.
To do this, cube both sides of the equation:
\([\)\((1+\)\(\frac{i}{200}\)\()^{10}\)\(]^3\)\(=(3)^3\)
\((1+\)\(\frac{i}{200}\)\()^{30}\)\(=27\)
Now multiply both sides by 2000 again:
\(2000\)\((1+\)\(\frac{i}{200}\)\()^{30}\)\(=54000\)
We have that, after 15 years, the $2000 investment compounded semiannually will be $54000.
Therefore, the answer is C
General Discussion
Re: Carcass invested $2,000 at a ceratin rate of interest compounded semi-
[#permalink]
03 Sep 2021, 00:02
03 Sep 2021, 00:02
2
2
Expert Reply
I do not have so much money 
