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Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent per
annum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro at
the end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest in
scheme A?
  • a)
    630
  • b)
    3150
  • c)
    5040
  • d)
    6300
  • e)
    Cannot be determined
Correct answer is option 'D'. Can you explain this answer?
Verified Answer
Petro invested x dollars each in scheme A and scheme B for two years. ...
Given:
  • Scheme A
    • Principal PA invested = x dollars
    • Rate of interest, RA = 10% p.a. Simple Interest
    • Investment time, TA = 2 years
    • Amount received after 2 years = AA
  • Scheme B
    • Principal PB invested = x dollars
    • Rate of interest, RB = 10% p.a. compounded annually
    • Investment time, TB = 2 years
    • Amount received = AB
  • AB - AA = 63
     
To Find: Value of x?
Approach:
  • For finding the value of x, we need to form an equation in x.
  • As we are given that x dollars each was invested in schemes A and B, we
  • can calculate the amount received from schemes A and B using the following formula:
3. We can then use the relation AB- AA = 63 to formulate an equation in x.
 
Working out:
3. Substituting the values of A and A in the relation A - A = 63, we have
a. 1.21x - 1.20x = 63
b x = $6300

Hence, Pedro invested $6300 in scheme A
Answer : D
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Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent perannum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro atthe end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest inscheme A?a)630b)3150c)5040d)6300e)Cannot be determinedCorrect answer is option 'D'. Can you explain this answer? for GMAT 2025 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent perannum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro atthe end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest inscheme A?a)630b)3150c)5040d)6300e)Cannot be determinedCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Petro invested x dollars each in scheme A and scheme B for two years. Scheme A offered a simple interest rate of 10 percent perannum while scheme B offered an interest rate of 10 percent per annum compounded annually. If the amount received by Petro atthe end of two years in scheme B was $63 greater than the amount received from scheme A, how much in dollars did he invest inscheme A?a)630b)3150c)5040d)6300e)Cannot be determinedCorrect answer is option 'D'. Can you explain this answer?.
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