Graduate Management Admission Test (GMAT)

Interest

Simple and compound interest calculations are required knowledge for the exam.

Formula for compound interest is: Total=principal x (1+R) t where R is the rate of interest and t is the number of interest periods.

Tip: take note of the interest period. If interest is 4% annually but is compounded semi-annually use R=2.00% and t=2

Data Interpretation

In some questions, you will be presented with data in the form of tables, graphs, pie charts, etc. Make sure that you are familiar with these basic methods of displaying data.

Verbal Section

This section of the GMAT will measure your ability to read and understand written material, critique arguments and correct written English. The section contains three types of question:

•Reading Comprehension

•Critical Reasoning

•Sentence Correction

These three types of question are randomly asked throughout the section, with each type accounting for approximately one third of the questions.

Reading Comprehension

The test presents a passage, which is up to 350 words in length. No previous knowledge of the subject is required or assumed. The questions will measure your ability to understand the argument as presented and analyze what is being said. Generally, there will be 3 or 4 questions that refer to the same piece of text, and they will all be asked one after the other.

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04/30/02

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