John invested $100 in each of the funds A and B. After one year, the value of the money in fund A was $10 higher than the value of the money in fund B. After another year, the value of the money in fund A was $25 higher than the value of the money in fund B. If the value of the money in each fund increased by a fixed interest compounded annually, what was the annual interest of fund A?
Correct answer: B
Explanation
If rate of interest in fund A is 20%, rate of interest in fund B is 10% and difference in interest earned on interest = 20% of 20 - 10% of 10 = 4 -1 = 3
If rate of interest in fund A is 30%, rate of interest in fund B is 20% and difference in interest earned on interest = 30% of 30 - 20% of 20 = 9 - 4 = 5
Answer (B)
Loading…
Searched on YouTube by reporting category, not by question text. Open this search on YouTube →
AQuA-RAT items are crowdsourced algebra problems, not ACT questions. They carry five answer choices in the pre-2025 ACT Mathematics style and no ACT reporting category. Useful for drilling Preparing for Higher Math content; not a substitute for a real form.