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Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price, approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
OA E
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Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest...
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Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interestAAPL wrote: ↑Thu Nov 12, 2020 9:50 amGMAT Prep
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price, approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
OA E
8% of $5,000 = $400
So, interest = $400
If that interest was approximately 6.5 percent of the bond's selling price,approximately what was the bond's selling price?
Let x = the bond's selling price
So, $400 = 6.5% of x
In other words: $400 = 0.065x
Solve: x = 400/0.065 ≈ 6154
Answer: E
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Brent
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Scott@TargetTestPrep
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Solution:AAPL wrote: ↑Thu Nov 12, 2020 9:50 amGMAT Prep
Last year a certain bond with a face value of $5,000 yielded 8 percent of its face value in interest. If that interest was approximately 6.5 percent of the bond's selling price, approximately what was the bond's selling price?
A. $4,063
B. $5,325
C. $5,351
D. $6,000
E. $6,154
OA E
Eight percent of $5,000 is 5000 x 0.08 = $400, and $400 is 6.5 percent of 400/0.065 = $6,513.84, or approximately $6,514.
Answer: E
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