Torres invested $P in a long term investment plan for 24 years at an interest compound annually. But due to some financial issues he had to withdraw money at the end of 6 years.How much more amount could he have gotten after 24 years if he received $3P after 6 years , if it's known that there were no pre-closing charges or deductions in the plan?

Answer Choices

Correct answer marked below

12P

72P

78P

Correct

81P

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Explanation

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Official Explanation

Official

This question is tricky at first since we don't know the compounding interest rate, and feels like perhaps we would need a compound interest formula to solve, but let's consider.

It started at

P

and then compounded 6 times and tripled itself to

3P

. So this is more like a Geometric sequence question! The rule is "

P

triples every 6 years."…

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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.