Last visit was: 26 Apr 2024, 01:50 It is currently 26 Apr 2024, 01:50
Decision Tracker
My Rewards
New comers' posts
New posts
Unanswered

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.

Go to My Error Log Learn more
Close

Request Expert Reply

Confirm Cancel
PREVIOUS TOPIC
NEXT TOPIC

To the nearest dollar, how much money needs to be invested

Tags :
Find Similar Topics  About  Add a Tag

Show Tags
Hide Tags

User avatar
D
Carcass
Verbal Expert
Joined: 18 Apr 2015
Posts: 28638
Own Kudos [?]: 33129 [2]
Given Kudos: 25178
Send PM
To the nearest dollar, how much money needs to be invested [#permalink] New post   30 Jul 2017, 08:22
1
Expert Reply
1
Bookmarks
00:00

Question Stats:

47% (04:45) correct 52% (02:36) wrong based on 106 sessions

Hide Show timer Statistics



To the nearest dollar, how much money needs to be invested in an account that earns 8 % interest, compounded quarterly, in order to have $12,000 at the end of 3 years?

(A) $9,462

(B) $9,326

(C) $9,677

(D) $9,804

(E) $11,308
ShowHide Answer
Official Answer
A
avatar
YMAkib
Intern
Intern
Joined: 08 Dec 2017
Posts: 40
Own Kudos [?]: 67 [2]
Given Kudos: 0
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   05 Feb 2018, 05:54
1
1
Bookmarks
Let the principal amount is P. In here we have used the multiplier concept for compounding quarterly.
So, 12000=p(1+8%/4)^(3*4) or, p ~ 9500
So A is the answer.
avatar
gremather
Manager
Manager
Joined: 15 Feb 2018
Posts: 53
Own Kudos [?]: 34 [1]
Given Kudos: 0
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   25 Feb 2018, 03:06
1
Shouldn't we need a scientific calculator for this question? I know that the equation would be 12,000 = P * (1 + 0.08/4)^ ((3*4)).
User avatar
D
Carcass
Verbal Expert
Joined: 18 Apr 2015
Posts: 28638
Own Kudos [?]: 33129 [0]
Given Kudos: 25178
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   26 Feb 2018, 13:02
Expert Reply
The GRE questions posed during the test are conceived to be solved in a certain amount of time and usually without calculator.

Nonetheless, you do have during your official exam.

Regards
User avatar
boxing506
Manager
Manager
Joined: 26 Jun 2017
Posts: 102
Own Kudos [?]: 69 [0]
Given Kudos: 0
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   05 Mar 2018, 07:25
YMAkib wrote:
Let the principal amount is P. In here we have used the multiplier concept for compounding quarterly.
So, 12000=p(1+8%/4)^(3*4) or, p ~ 9500
So A is the answer.

you did not turn 8/4 into percent form, it's 8/4/100
avatar
shrey09
Intern
Intern
Joined: 17 Oct 2021
Posts: 3
Own Kudos [?]: 1 [1]
Given Kudos: 1
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   23 Nov 2021, 13:18
1
Carcass wrote:
The GRE questions posed during the test are conceived to be solved in a certain amount of time and usually without calculator.

Nonetheless, you do have during your official exam.

Regards



how do we calculate this without a calculator?
I mean, the exact figures
User avatar
D
Carcass
Verbal Expert
Joined: 18 Apr 2015
Posts: 28638
Own Kudos [?]: 33129 [0]
Given Kudos: 25178
Send PM
Re: To the nearest dollar, how much money needs to be invested [#permalink] New post   23 Nov 2021, 16:43
Expert Reply
Notice how this is not a perfect question, in fact, it is not an official question.

An official question has perfectly all the answer choices in ascending order. So the answer , that is A, should be in the second place. Therefore, B.

Aside from this consideration the question is pretty straightforward if you use the answer choices.

start with B

9,326 *1.08=10,072

this value per 1.08 another two times (3 in total) and you will get a result a bit far from 12,000

At this point is reasonable to think the answer is A which is slightly higher as value

30 seconds

see more here for % https://gre.myprepclub.com/forum/gre-math- ... tml#p81625

or here for compound interest https://gre.myprepclub.com/forum/gre-quant ... 18388.html
Prep Club for GRE Bot
gmatclubot
[#permalink]
Moderators:
BrushMyQuant
Moderator
1085 posts
VibhuAnurag
GRE Instructor
218 posts

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

Main navigation

Partners

GRE Resources

www.ets.org/gre | About | Terms and Conditions and Privacy Policy | Prep Club for GRE Rules | Contact