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A savings account earns 1% interest compounded each month,

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A savings account earns 1% interest compounded each month, [#permalink] New post 24 Feb 2009, 18:56
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A savings account earns 1% interest compounded each month, on the last day of the month. If the balance on 12/7 was $1,115.67, during which month did the account go over $1,000.
1. $1,000 was deposited last 12/31
2. There were no deposits or withdrawals this year

The answer is listed as B but if you know the current balance, can't you solve back to find the prior month's balance up to the point where the account first hit $1,000?
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Re: DS-compound interest [#permalink] New post 25 Feb 2009, 13:48
Did you post the question correctly because $1,000 is mentioned in the question and statement as well?

If 1,000 were depositied on 12/31, then it crossed 01/01 on the next day if there were no addition or deduction.


bean2809 wrote:
A savings account earns 1% interest compounded each month, on the last day of the month. If the balance on 12/7 was $1,115.67, during which month did the account go over $1,000.

1. $1,000 was deposited last 12/31
2. There were no deposits or withdrawals this year

The answer is listed as B but if you know the current balance, can't you solve back to find the prior month's balance up to the point where the account first hit $1,000?


Thats true but you need information about whether there were some addition or deduction in the past. It could be this month if 12,000 was added and 9000 was taken out or so on.... If there were no addition or deduction, then we know when the balance reached according to what you said.
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Re: DS-compound interest [#permalink] New post 25 Feb 2009, 14:20
bean2809 wrote:
A savings account earns 1% interest compounded each month, on the last day of the month. If the balance on 12/7 was $1,115.67, during which month did the account go over $1,000.
1. $1,000 was deposited last 12/31
2. There were no deposits or withdrawals this year

The answer is listed as B but if you know the current balance, can't you solve back to find the prior month's balance up to the point where the account first hit $1,000?


stmt 1: you don't know whether any deposits or withdrawls exist before 12/7 ...
You can't find
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Re: DS-compound interest [#permalink] New post 02 Mar 2009, 10:41
Got it. You are both correct, yet the question stem should have said "at what point did the account go over $1100." Thanks.
Re: DS-compound interest   [#permalink] 02 Mar 2009, 10:41
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