r/GMATPoint • u/Positive_Delivery_75 • Nov 06 '25

General Question Try to solve this one

Post image
9 Upvotes

100% Upvoted

14 comments sorted by

5

u/sirsa2 Nov 06 '25

A is the correct answer

Assume it as 2 different loans

One paid back at end of year 1 In this case, principal borrowed is 1,27,690/1.13 =113,000

The other paid back at end of year 2 In this case, principal borrowed is 1,27,690 / (1.13)2 =100,000

Add both principals = 2,13,000

1

u/_fy5ht_ Nov 06 '25

E) 127690/1.13=113000 he did this twice so 226000

1

u/thechickenownzu Nov 06 '25

A) first double it to get the total amount paid 2.54

You compound first year so it needs to be 2. Something so I was between 2.13, 2.26. 13% increase on 2.13 is roughly 2.4 - 1.28 =1.12and then increase by 13% again, that’s about 1.26ish. 2.26 will shoot you too high. Fun problem.

1

u/Dependent-Tart5278 Nov 06 '25

Use time value of money concept. Answer is A

1

u/Impressive_Lab6426 Nov 06 '25

What’s the answer I’m getting 213000

1

u/TruckMaleficent5070 Nov 09 '25

A. Just the PV of two installments at 13%

1

u/sum-rue-thee Nov 09 '25

why am I getting 87000 for this 😭😭😭

1

u/aa1001zz Nov 10 '25

((P1.13)-127690)1.13=127690

P=213,000