GMAT Practice Question Set #12 (Question 34-36)

Problem Solving Question #36: Bond Investment Yields  
Time 0 0 : 0 0 : 0 0

Roger's hedge fund is taking x dollars and investing in bonds that yield r percent in simple interest.
The amount of interest earned over 2 years is $1000. In terms of x, the dollar amount invested, what
dollar amount invested will yield $4000 over 5 years, assuming the bond's yield remains the same?

(A)

`x`

(B)

`(2x)/3`

(C)

`2x`

(D)

`(4x)/3`

(E)

`(8x)/5`

GMATTM is a registered trademark of the Graduate Management Admission CouncilTM. The Graduate Management Admission CouncilTM does not endorse, nor is it affiliated in any way with the owner or any content of this web site.