Quantitative Reasoning: Interest Problems

This is an MCQ quiz for GMAT, which includes questions on Quantitative Reasoning (Interest Problems).

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Joe invests $4,000 in a certificate of deposit that accrues interest that is compounded monthly. What is the annual interest rate? Statement 1: During the first month, the certificate drew $7.83 in interest. Statement 2: During the second month, Joe drew $7.85 in interest.

BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question. BOTH statements TOGETHER are insufficient to answer the question. Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question. EITHER statement ALONE is sufficient to answer the question. Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question.

Quincy invests $30,000 in a certificate of deposit that draws compound interest. How frequently is the interest compounded - monthly, bimonthly, or quarterly? Statement 1: The first interest payment is 0.964% of the principal. Statement 2: The first interest payment is $289.20

Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question. Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question. BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question. BOTH statements TOGETHER are insufficient to answer the question. EITHER statement ALONE is sufficient to answer the question.

At the beginning of January of 2015, Olga invested one half of the money she earned in December of 2014 in a certificate of deposit that pays 3.15% annual interest, compounded monthly. At the end of six years, how much will that certificate of deposit be worth? Statement 1: Olga earned $63,000 in 2014. Stateent 2: Olga earned the same amount of money each month in 2013.

BOTH statements TOGETHER are insufficient to answer the question. EITHER statement ALONE is sufficient to answer the question. Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question. BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question. Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question.

Natasha decides to invest her entire Christmas bonus in a certificate of deposit that pays 2.15% annual interest, compounded monthly. At the end of five years, how much will that certificate of deposit be worth? Statement 1: Natasha was given a $3,000 Christmas bonus. Stateent 2: Natasha earns an annual salary of $54,000.

Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question. BOTH statements TOGETHER are insufficient to answer the question. BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question. EITHER statement ALONE is sufficient to answer the question. Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question.

Mitchell deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years? Statement 1: Mitchell deposited $10,000. Statement 2: The savings account draws annual interest of 2.12%, compounded quarterly.

Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question. EITHER statement ALONE is sufficient to answer the question. BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question. Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question. BOTH statements TOGETHER are insufficient to answer the question.

John deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years? Statement 1: John deposited $5,000. Statement 2: The interest is compounded monthly.

Jenna needs $100,000 5 years from today to start a business. After talking to an investment banker, Jenna is assured to gain an annually compounded interest of i.

What amount of money does Jenna need to invest today?

(1) (1+i)^t=17

(2) 1+5i=1.6

Each statement ALONE is sufficient

Both statements TOGETHER are sufficient, but NEITHER statement ALONE is sufficient

Statement (1) ALONE is sufficient, but Statement (2) ALONE is not sufficient

Statement (2) ALONE is sufficient, but Statement (1) ALONE is not sufficient

Both statements TOGETHER are not sufficient.

Tyler invests $20,000 in a certificate of deposit that draws compound interest. How frequently is the interest compounded - monthly, bimonthly, or quarterly?
Statement 1: The certificate draws 3.15% annual compound interest.
Statement 2: The certificate draws $638.33 the first year.

Statement 2 ALONE is sufficient to answer the question, but Statement 1 ALONE is NOT sufficient to answer the question.

Statement 1 ALONE is sufficient to answer the question, but Statement 2 ALONE is NOT sufficient to answer the question.

BOTH statements TOGETHER are insufficient to answer the question.

EITHER statement ALONE is sufficient to answer the question.

BOTH statements TOGETHER are sufficient to answer the question, but NEITHER statement ALONE is sufficient to answer the question.

Quiz/Test Summary

Title: Quantitative Reasoning: Interest Problems

Questions: 8

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