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A deposit at a local bank earns between 2 percent and 5

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GMAT Club Legend
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Joined: 07 Jun 2014
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A deposit at a local bank earns between 2 percent and 5 [#permalink] New post 18 Dec 2016, 15:19
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Question Stats:

94% (00:58) correct 5% (00:00) wrong based on 17 sessions
A deposit at a local bank earns between 2 percent and 5 percent simple interest in a year. If Shirley makes an initial deposit of $800 at the bank, which of the following could be the amount of money in her account at the end of one year?

A. $814
B. $820
C. $842
D. $848
E. $860

Drill 1
Question: 4
Page: 311
[Reveal] Spoiler: OA

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GMAT Club Legend
GMAT Club Legend
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Joined: 07 Jun 2014
Posts: 4749
GRE 1: Q167 V156
WE: Business Development (Energy and Utilities)
Followers: 93

Kudos [?]: 1654 [0], given: 396

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Re: A deposit at a local bank earns between 2 percent and 5 [#permalink] New post 18 Dec 2016, 15:31
Expert's post
Explanation

5% of $800 is $40, thus, the maximum amount of money that could be in the account at the end of one year is $840; eliminate choices (C), (D), and (E).
Similarly, the minimum amount that could be in the account at the end of one year is $800 plus 2% of $800, or $816; eliminate choice (A).

Hence option B is correct.
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Re: A deposit at a local bank earns between 2 percent and 5 [#permalink] New post 28 Dec 2016, 16:53
Expert's post
sandy wrote:
A deposit at a local bank earns between 2 percent and 5 percent simple interest in a year. If Shirley makes an initial deposit of $800 at the bank, which of the following could be the amount of money in her account at the end of one year?

A. $814
B. $820
C. $842
D. $848
E. $860



1% of $800 = $8
So, 2% of $800 = $16
So, at a 2% rate, Shirley has a TOTAL balance of $816

10% of $800 = $80
So, 5% of $800 = $40
So, at a 5% rate, Shirley has a TOTAL balance of $850

This means Shirley's balance is BETWEEN $816 and $840

Only answer choice B meets this condition.

Cheers,
Brent
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Re: A deposit at a local bank earns between 2 percent and 5 [#permalink] New post 04 Jun 2018, 03:37
This questions call us to use our approximation instinct. its simple interest so first 2% annual interest will give us 816 and second 5% will give us 840 our answer should be in the between of these figures.
Re: A deposit at a local bank earns between 2 percent and 5   [#permalink] 04 Jun 2018, 03:37
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