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 Post subject: GMAT Integrated Reasoning: Two-Part Analysis
PostPosted: Tue Sep 09, 2014 3:42 am 
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Posts: 483
A small business loan has a principal amount of $125,000 and a yearly simple interest rate of C%. Another small business loan has a principal of $150,000 and a yearly simple interest rate of D%. Both loans will be consolidated to form a loan at a yearly simple interest of 5%. Select a value for C and D that results in a total interest closest to that of the consolidated loan, where D > C and the interest on the consolidated loan must be lower than the interest on the two individual loans. Make only two selections, one in each column.

A. 4
B. 5.5
C. 6
D. 6.5
E. 7
F. 7.5
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However, the problem states that the interest on the 2 individual loans must be higher than the interest of the consolidated loan. 4% is lower than 5%.


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 Post subject: Re: GMAT Integrated Reasoning: Two-Part Analysis
PostPosted: Tue Sep 09, 2014 3:43 am 
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Quote:
However, the problem states that the interest on the 2 individual loans must be higher than the interest of the consolidated loan. 4% is lower than 5%.
The interest must be, not an interest rate.
And the interest is greater, $14,000 > $13.750.


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