An investment yielded an interest payment of $350 each month when the annual interest rate was 9%, what is the amount of the investment that should be invested with an annual interest rate of 8% ifWe want to gain 15% more each month?
Answer(s): A
The new monthly payment should be 1.15 x $350 = $402.5. Now we’ll proceed with the formula: Principal × percent interest = interest earnedPrinciple × (0.08)× 1/12 = $402.5.Solve for the principal (402.5 × 12)/.08= $60,375.
An investment gained an interest payment of $250 each month when the annual interest rate was 8%, how much more should we invest annually if we want to gain 12% more per month with a new annual interest rate of 7.5% ?
Answer(s): D
The new monthly payment should be 1.12 x $250 = $280. Now we’ll proceed with the formula: Principal × percent interest = interest earnedSolve for the principal for the 9% interest: (250 × 12)/.08= $37,500, this is what we invested before.Solve for the principal for the 6.5% interest: (280 × 12)/.075= $44,800, this is what we should invest with the new interest. (44800 – 37500 = $7,300) is the amount to be added to the prime payment.
Mike earns $14 per hour and Phil earns $10.5 per hour. Approximately how much less, as a percentage, does Phil earn than Mike per hour?
Mike earns (14 – 10.5) $3.5 more than Phil, that is 3.5/14 = 0.25 = 25%.
A frustrated greengrocer is trying to cell cucumbers at a price of $1.5 per Kg. Unfortunately he has no success. The greengrocer gives a discount of 18% on the original price but than the cucumbers are sold too fast so he raises the price again by 10%. At that final price, how many cucumbers can you buy for $4.5 assuming that there are 12 cucumbers per Kg and that only a whole number of Kgs are sold?
Answer(s): E
1.5 x 0.82 = $1.23.$1.23 x 1.1 = 1.353$5 / 1.353 = 4 Kg and change = 48 cucumbers.
An air-conditioning unit costs $470. On December there was a discount for Christmas of 16%. Six months later, the holiday season was over so the company raised the price of the air-conditioning by 16%. How much will an air-conditioning unit cost in November?
Pay attention, when you raise a number by X% and than you reduce X% you don’t get the original number again because the second time you took X% off you reduced it from a larger number thus answer A is not the correct one, let’s check:470 x 0.84 = 394.8.394.8 x 1.16 = approximately $458.A simpler way to solve this problem is by knowing that the price would be lower than the original price because we increased and decreased the same amount of percentage.
Post your Comments and Discuss Test Prep GMAT Test exam prep with other Community members:
Our website is free, but we have to fight against AI bots and content theft. We're sorry for the inconvenience caused by these security measures. You can access the rest of the GMAT Test content, but please register or login to continue.