Jane's investment of $200 increased by 200% in 7 years when compounded annually. If she wants to earn an additional compound interest of $4800, for how many more years should she keep her money invested?

Answer Choices

Correct answer marked below

7 years

14 years

Correct

21 years

24 years

30 years

See the full step-by-step explanation

You can see the correct answer above. Sign in for free to unlock the complete worked solution.

Track your performance and improve

Get detailed analytics, unlock full explanations, and move up difficulty tiers as you practice.

Start for free Sign in

Explanation

Preview

Official Explanation

Official

In 7 years, $200 increased by 200% means the amount becomes $200 + $400 = $600.

So the value triples every 7 years.

Starting: $200

After 7 years: $600

After another 7 years (14 total): $600 * 3 = $1800

After another 7 years (21 total): $1800 * 3 = $5400…

Read the full explanation

Create free account Sign in

Comments

No comments yet

Be the first to share your thoughts and help others understand it better.

What this question tests

What it tests

Your ability to apply GMAT math concepts to solve a multi-step problem quickly and accurately. At the 705-805 level, accuracy and speed both matter.

Common trap

Overcomplicating the setup — most GMAT problems reward a direct, organized approach over brute calculation.