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# Compounding interest question! - Fast!

Author Message
Intern
Joined: 31 Aug 2016
Posts: 46
Compounding interest question! - Fast!  [#permalink]

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14 Dec 2017, 01:45
00:00

Difficulty:

(N/A)

Question Stats:

0% (00:00) correct 0% (00:00) wrong based on 0 sessions

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Guys the question I will refer to, is this: donald-plans-to-invest-x-dollars-in-a-savings-account-that-pays-intere-97687.html?fl=similar.

I would like to know why we take 4% for the 6th month.
If the interest is compounded querterly: the 3rd month we will take back a=(x*1.02) and then on the 6th month we will take back b=((x*1.02)*1.02) so it should be a+b=x+100.

Why it isn't?

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

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Math Expert
Joined: 02 Sep 2009
Posts: 52285
Re: Compounding interest question! - Fast!  [#permalink]

### Show Tags

14 Dec 2017, 02:39
standyonda wrote:
Guys the question I will refer to, is this: donald-plans-to-invest-x-dollars-in-a-savings-account-that-pays-intere-97687.html?fl=similar.

I would like to know why we take 4% for the 6th month.
If the interest is compounded querterly: the 3rd month we will take back a=(x*1.02) and then on the 6th month we will take back b=((x*1.02)*1.02) so it should be a+b=x+100.

Why it isn't?

This problem is discussed here: donald-plans-to-invest-x-dollars-in-a-savings-account-that-82702.html If you have a question you should post in that thread and not start a new thread.

--== Message from the GMAT Club Team ==--

THERE IS LIKELY A BETTER DISCUSSION OF THIS EXACT QUESTION.
This discussion does not meet community quality standards. It has been retired.

If you would like to discuss this question please re-post it in the respective forum. Thank you!

To review the GMAT Club's Forums Posting Guidelines, please follow these links: Quantitative | Verbal Please note - we may remove posts that do not follow our posting guidelines. Thank you.

_________________
Re: Compounding interest question! - Fast! &nbs [#permalink] 14 Dec 2017, 02:39
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