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Re: The interest rate, compounded annually, that would bring a [#permalink]
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In fact, it was in the MGRE book. Of course is not a GRE question otherwise would be in the ETS books :P :)
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Re: The interest rate, compounded annually, that would bring a [#permalink]
Carcass wrote:
In fact, it was in the MGRE book. Of course is not a GRE question otherwise would be in the ETS books :P :)

After your comment I started practicing from ETS and left MGRE
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Re: The interest rate, compounded annually, that would bring a [#permalink]
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Wise decision :)

However, I want to explain a little further for not haveing possible misunderstanding

As for the question itself, you just needed to know the rule for compound interest and use the calculator. Bingo.

Is this a GRE question that tests you reasoning skills ?? Certainly NOT

But overall MGRE on the quant side the books are good because they explain you the strategy very well and they delve into the very details, explaining the math concepts.

They are good.

On the verbal side, forget about it

Regards
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Re: The interest rate, compounded annually, that would bring a [#permalink]
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Carcass wrote:
Wise decision :)

However, I want to explain a little further for not haveing possible misunderstanding

As for the question itself, you just needed to know the rule for compound interest and use the calculator. Bingo.

Is this a GRE question that tests you reasoning skills ?? Certainly NOT

But overall MGRE on the quant side the books are good because they explain you the strategy very well and they delve into the very details, explaining the math concepts.

They are good.

On the verbal side, forget about it

Regards


I was doing both quant and verbal from MGRE, I found Maths good, partly because I have already practiced GMAT quant from official guide as well as Manhattan. In verbal, the vocab is too much to handle but still I was trying. Anyway now my first priority is definitely ETS. Your comment was a huge help Carcass. Thank you :)
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The interest rate, compounded annually [#permalink]
The interest rate, compounded annually, that would bring a principal of $1,200 to a final value of $1,650 in 2 years
is closest to


(A) 17%
(B) 18%
(C) 19%
(D) 20%
(E) 21%
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Re: The interest rate, compounded annually, that would bring a [#permalink]
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Merged similar topic.

See the explanation above.

use the search button before to post a question, likely is already discussed

Regards
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Re: The interest rate, compounded annually, that would bring a [#permalink]
1
General Compound Interest Forumula

P= principal
r= rate
n=number of compoundings per time interval
t= number of time intervals
FV= future value

FV=P(1+r)^(nt)


In our case we are trying to find r

P=1200
n=1
t=2
FV=1650

1650=1200(1+r)^(2*1)
1650/1200=(1+r)^2

1+r=(1650/1200)^.5
r=(1650/1200)^.5-1

use the provided calculator in the gre exam to calculate this quickly

r=.1726

this is closest to 17%

Final Answer: A
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Re: The interest rate, compounded annually, that would bring a [#permalink]
Hello from the GRE Prep Club BumpBot!

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