GMAT Quantitative Reasoning Practice Test 3

Question : 86 of 100

Marks: +1, -0

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% if we want to gain 15% more each month?

$\$ 60,375$
$\$ 50,400$
$\$ 41,300$
$\$ 32,500$
$\$ 25,100$

Validate

Solution:

The new monthly payment should be

1.15 × \$ 350=\$ 402.5

. Now we'll proceed with the formula:
Principal

\times

percent interest

=

interest earned Principal

×(0.08) × 1 / 12=\$ 402.5

.
Solve for the principal

(402.5 × 12) {/ }.08=\$ 60,375

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