medium · GMAT Quant
An investor deposits $20,000 for one year at an annual interest rate of r%. If the bank compounds this rate semiannually, the investor earns exactly $50 more in interest over the year than if the bank had simply applied r% once, as ordinary simple interest, for the full year.
What is the value of r?
- 5%
- 20%
- 10%
- 14.1%
- 7.5%
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