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A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns an
interest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.
What is the difference in the interest earned under the two investment schemes at the end of the second year?
interest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.
What is the difference in the interest earned under the two investment schemes at the end of the second year?
- The amount the person invests in each scheme is $10,000.
- He earns an interest of $1000 in the 1 scheme at the end of 1 year.
- a)Statement (1) ALONE is sufficient, but statement (2) alone is
not sufficient to answer the question asked. - b)Statement (2) ALONE is sufficient, but statement (1) alone is
not sufficient to answer the question asked - c)BOTH statements (1) and (2) TOGETHER are sufficient to
answer the question asked, but NEITHER statement ALONE
is sufficient to answer the question asked. - d)EACH statement ALONE is sufficient to answer the question
asked. - e)Statements (1) and (2) TOGETHER are NOT sufficient to
answer the question asked, and additional data specific to the
problem are needed.
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
A person invests an equal amount of money in two investment schemes fo...
Step 1 & 2: Understand Question and Draw Inference
Given
First investment Scheme
- In the first scheme a person invests the amount at simple interest.
- We know, Simple Interest → S.I. =
, where P is the amount invested, P is the rate of interest for the investment, & T is the time during which the investment is made. - Given to us is T =2 years, R =10% p.a., but we do not know the principal amount of 1 investment scheme (P ) over here.
- Since we do not know the value of P , we will not be able to calculate the amount of simple interest earned under the first investment scheme.
Second investment Scheme
- In the second investment scheme he invests the amount at the compound interest.
- We know, in investment under compound interest, amount is given by
where P2 is the amount invested, R2 is the rate of interest for the investment, & n is the time for which the investment is made. - Given to us is n=2 years, R2 =10% p.a, but we do not know the principal amount (P2 ) of 2 investment scheme over here.
- Since we do not know the value of P , we will not be able to calculate the amount earned under the second investment scheme and thus will not be able to calculate the compound interest.
- Also Given is P1 = P2 (an equal amount of money is invested in both the schemes)
To Find:
- Difference in the interests earned under two investments scheme i.e. C.I. -S.I
- Since for knowing the values of S.I. and C.I. , we need to know the principal amount under two schemes, we need to analyse the statements further to be able to calculate the difference in the interests under two schemes.
Step 3 : Analyze Statement 1 independent
Statement 1
- The amount the person invests in each scheme is $10,000.
- So we know the Principal amount invested under each scheme or we are given the value of P1 & P2 , we will be able to calculate the C.I. and S.I. as already established above.
- Thus statement 1 will be sufficient to answer the question.
Step 4 : Analyze Statement 2 independent
Statement 2:
- He earns an interest of $1000 in the 1 scheme at the end of 1 year.
- Now the first scheme is an investment made under Simple interest.
- By the formula of S.I., we have
, where S.I. =$1000, R → 10% & T=1 year, we will be able to calculate the value of P. - The P calculated above will be equal to P i.e. the investment under the first scheme, which in turn is also equal to P2.
- Now calculating the values of P & P2, we will be able to calculate the C.I. and S.I. as already established above.
- Thus statement 2 will be sufficient to answer the question.
Step 5: Analyze Both Statements Together (if needed)
- Since from statement 1 and statement 2, we are able to arrive at a unique answer, combining and analysing statements together is not required.
- Hence the correct answer is option D
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A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer?
Question Description
A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer?.
A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? for GMAT 2024 is part of GMAT preparation. The Question and answers have been prepared according to the GMAT exam syllabus. Information about A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for GMAT 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer?.
Solutions for A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for GMAT.
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A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer?, a detailed solution for A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? has been provided alongside types of A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A person invests an equal amount of money in two investment schemes for two years. In the first investment scheme, he earns aninterest at 10% p.a. simple interest and in the second investment scheme he earns an interest at 10% p.a. compounded annually.What is the difference in the interest earned under the two investment schemes at the end of the second year? The amount the person invests in each scheme is $10,000. He earns an interest of $1000 in the 1 scheme at the end of 1 year.a)Statement (1) ALONE is sufficient, but statement (2) alone isnot sufficient to answer the question asked.b)Statement (2) ALONE is sufficient, but statement (1) alone isnot sufficient to answer the question askedc)BOTH statements (1) and (2) TOGETHER are sufficient toanswer the question asked, but NEITHER statement ALONEis sufficient to answer the question asked.d)EACH statement ALONE is sufficient to answer the questionasked.e)Statements (1) and (2) TOGETHER are NOT sufficient toanswer the question asked, and additional data specific to theproblem are needed.Correct answer is option 'D'. Can you explain this answer? tests, examples and also practice GMAT tests.
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