Pattern Behaviors in Exponents - GRE Quantitative Reasoning

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Question

Jack has , to invest. If he invests two-thirds of it into a high-yield savings account with an annual interest rate of , compounded quarterly, and the other third in a regular savings account at simple interest, how much does Jack earn after one year?

Answer

First, break the problem into two segments: the amount Jack invests in the high-yield savings, and the amount Jack invests in the simple interest account (10,000 and 5,000 respectively).

Now let's work with the high-yield savings account. $10,000 is invested at an annual rate of 8%, compounded quarterly. We can use the compound interest formula to solve:

Plug in the values given:

Therefore, Jack makes $824.32 off his high-yield savings account. Now let's calculate the other interest:

Add the two together, and we see that Jack makes a total of, off of his investments.

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Question

A five-year bond is opened with in it and an interest rate of %, compounded annually. This account is allowed to compound for five years. Which of the following most closely approximates the total amount in the account after that period of time?

Answer

Each year, you can calculate your interest by multiplying the principle () by . For one year, this would be:

For two years, it would be:

, which is the same as

Therefore, you can solve for a five year period by doing:

Using your calculator, you can expand the into a series of multiplications. This gives you , which is closest to .

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Question

If a cash deposit account is opened with for a three year period at % interest compounded once annually, which of the following is closest to the positive difference between the interest accrued in the third year and the interest accrued in the second year?

Answer

It is easiest to break this down into steps. For each year, you will multiply by to calculate the new value. Therefore, let's make a chart:

After year 1: ; Total interest:

After year 2: ; Let us round this to ; Total interest:

After year 3: ; Let us round this to ; Total interest:

Thus, the positive difference of the interest from the last period and the interest from the first period is:

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Question

What digit appears in the units place when is multiplied out?

Answer

This problem is quite simple if you recall that the units place of powers of 2 follows a simple 4-step sequence.

Observe the first few powers of 2:

21 = 2, 22 = 4, 23 = 8, 24 = 16, 25 = 32, 26 = 64, 27 = 128, 28 = 256 . . .

The units place follows a sequence of 2, 4, 8, 6, 2, 4, 8, 6, etc. Thus, divide 102 by 4. This gives a remainder of 2.

The second number in the sequence is 4, so the answer is 4.

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Question

If , then which of the following must also be true?

Answer

We know that the expression must be negative. Therefore one or all of the terms x7, y8 and z10 must be negative; however, even powers always produce positive numbers, so y8 and z10 will both be positive. Odd powers can produce both negative and positive numbers, depending on whether the base term is negative or positive. In this case, x7 must be negative, so x must be negative. Thus, the answer is x < 0.

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Question

Quantitative Comparison

Quantity A: _x_2

Quantity B: _x_3

Answer

Let's pick numbers. For quantitative comparisons with exponents, it's good to try 0, a negative number, and a fraction.

0: 02 = 0, 03 = 0, so the two quantities are equal.

–1: (–1)2 = 1, (–1)3 = –1, so Quantity A is greater.

Already we have a contradiction so the answer cannot be determined.

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Question

Which quantity is the greatest?

Quantity A

Quantity B

Answer

First rewrite quantity B so that it has the same base as quantity A.

can be rewriten as , which is equivalent to .

Now we can compare the two quantities.

is greater than .

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Question

Which of the following is a multiple of ?

Answer

For exponent problems like this, the easiest thing to do is to break down all the numbers that you have into their prime factors. Begin with the number given to you:

Now, in order for you to have a number that is a multiple of this, you will need to have at least in the prime factorization of the given number. For each of the answer choices, you have:

; This is the answer.

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Question

Simplify the following:

Answer

Because the numbers involved in your fraction are so large, you are going to need to do some careful manipulating to get your answer. (A basic calculator will not work for something like this.) These sorts of questions almost always work well when you isolate the large factors and notice patterns involved. Let's first focus on the numerator. Go ahead and break apart the into its prime factors:

Note that these have a common factor of . Therefore, you can rewrite the numerator as:

Now, put this back into your fraction:

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Question

Simplify the following:

Answer

With problems like this, it is always best to break apart your values into their prime factors. Let's look at the numerator and the denominator separately:

Numerator

Continuing the simplification:

Now, these factors have in common a . Factor this out:

Denominator

This is much simpler:

Now, return to your fraction:

Cancel out the common factors of :

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