Official Guide Explanation:
Data Sufficiency #7




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Solution and Metadata

Question: 7
Page: 273
Difficulty: 4 (Moderately Easy)
Category 1: Word Problems > Interest Problems > Compound

Explanation: To compare the annual rates of return, we'll need information either comparing the rates of return directly, or information on each individual investment.

Statement (1) is sufficient. If J returns $115 per $1,000, we know its annual rate of return. (No need to calculate.) Similarly, given the data provided on K, we know its annual rate as well.

Statement (2) is insufficient. While it gives us K's rate, it says nothing about J. Choice (A) is correct.

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