Growth of an Investment

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The value of an investment increased according to a variable annual rate such that its value in 2006 was 1.43 times its value in 1998. What was the value of the investment in 1998?

(1) The value was $373.80 more in 2006 than in 1998.

(2) The value of the investment was $1243.11 in 2006.

Review: Growth of an Investment




Explanation

We have an investment with two values. Where N and T stand for the values of this investment now and then, we can write . We could get sufficient information in the form of a distinct equation with these two variables. On to the data statements, separately first.

Statement (1) tells us that . We have a second equation and two variables, so we can solve completely. Sufficient.

Statement (2) tells us that . Again, this allows us to solve for T. Sufficient.

The correct answer is (D).


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