Last visit was: 19 Nov 2025, 09:04 It is currently 19 Nov 2025, 09:04
Home
GMAT
Messages
Tests
Schools
Events
Rewards
Chat
My Profile
Close
GMAT Club Daily Prep
Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History
Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.
Go to My Error Log Learn more
Close
Request Expert Reply
Confirm Cancel
Back to Forum
Create Topic
User avatar
jimmyjamesdonkey
User avatar
Joined: 01 May 2007
Last visit: 27 Mar 2009
Posts: 484
Own Kudos:
1,539
 [23]
Posts: 484
Kudos: 1,539
 [23]
If $1000 was invested at an annual interest rate of 5.6% compounded an 31 May 2008, 14:17
8
Kudos
Add Kudos
14
Bookmarks
Bookmark this Post
00:00
Start Timer
Pause Timer
Resume Timer
Show Answer
Hide
Show
History
E
Be sure to select an answer first to save it in the Error Log before revealing the correct answer (OA)!

Difficulty:

5% (low)

Question Stats:

80% (00:51) correct 20% (01:10) wrong based on 1554 sessions

History

Date
Time
Result
Not Attempted Yet
If $1000 was invested at an annual interest rate of 5.6% compounded annually, which of the following represents the amount the investment was worth after 3 years?


A. \(1000 (1.056)(3)\)

B. \(1000 (3+1.056)\)

C. \(1000 (1+3(0.056))\)

D. \(1000 (1+(0.056)^3)\)

E. \(1000 (1.056)^3\)
ShowHide Answer
Official Answer
E
User avatar
FN
User avatar
Current Student
Joined: 28 Dec 2004
Last visit: 07 May 2012
Posts: 1,576
Own Kudos:
675
 [3]
Given Kudos: 2
Location: New York City
Concentration: Social Enterprise
Schools:Wharton'11 HBS'12
Posts: 1,576
Kudos: 675
 [3]
If $1000 was invested at an annual interest rate of 5.6% compounded an 31 May 2008, 14:22
2
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
jimmyjamesdonkey
If $1,000 was invested at an annual interest rate of 5.6 % compounded annually, which of the following represents the amount the investment was worth after 3 years?

$1000(1.056)(3)
1,000(3 + 1.056)
1,000(1+3(0.056)
1,000[1+(0.056)^3]
1,000(1.056)^3
Show more

the formula is CI=P(1+r/100)^t

in this case i think E is the ans
avatar
PareshGmat
avatar
Joined: 27 Dec 2012
Last visit: 10 Jul 2016
Posts: 1,534
Own Kudos:
8,102
 [1]
Given Kudos: 193
Status:The Best Or Nothing
Location: India
Concentration: General Management, Technology
WE:Information Technology (Computer Software)
Posts: 1,534
Kudos: 8,102
 [1]
If $1000 was invested at an annual interest rate of 5.6% compounded an 14 May 2014, 23:58
1
Kudos
Add Kudos
Bookmarks
Bookmark this Post
FN
jimmyjamesdonkey
If $1,000 was invested at an annual interest rate of 5.6 % compounded annually, which of the following represents the amount the investment was worth after 3 years?

$1000(1.056)(3)
1,000(3 + 1.056)
1,000(1+3(0.056)
1,000[1+(0.056)^3]
1,000(1.056)^3

the formula is CI=P(1+r/100)^t

in this case i think E is the ans
Show more


It should be Amount instead of CI

CI amount calculated as below:

\(Amount = P (1+\frac{r}{100})^n\)

CI = Amount - P
avatar
unceldolan
avatar
Joined: 21 Oct 2013
Last visit: 03 Jun 2015
Posts: 151
Own Kudos:
243
 [2]
Given Kudos: 19
Location: Germany
Schools: Owen '17 (A$) Sauder '17 (A$) Schulich '17 (WD) Anderson FEMBA '17 (S) McDonough '17 (A) Desautels '17 (S)
GMAT 1: 660 Q45 V36
GPA: 3.51
Schools: Owen '17 (A$) Sauder '17 (A$) Schulich '17 (WD) Anderson FEMBA '17 (S) McDonough '17 (A) Desautels '17 (S)
GMAT 1: 660 Q45 V36
Posts: 151
Kudos: 243
 [2]
If $1000 was invested at an annual interest rate of 5.6% compounded an 20 Jun 2014, 01:20
Kudos
Add Kudos
1
Bookmarks
Bookmark this Post
1000 * 1.056 * 1.056 * 1.056 = 1000 * 1.056^3. E.
User avatar
GGMAT760
User avatar
Joined: 22 Feb 2014
Last visit: 13 Jan 2015
Posts: 22
Own Kudos:
131
Given Kudos: 14
Posts: 22
Kudos: 131
If $1000 was invested at an annual interest rate of 5.6% compounded an 24 Jul 2014, 11:02
Kudos
Add Kudos
Bookmarks
Bookmark this Post
FN
jimmyjamesdonkey
If $1,000 was invested at an annual interest rate of 5.6 % compounded annually, which of the following represents the amount the investment was worth after 3 years?

$1000(1.056)(3)
1,000(3 + 1.056)
1,000(1+3(0.056)
1,000[1+(0.056)^3]
1,000(1.056)^3

the formula is CI=P(1+r/100)^t

in this case i think E is the ans
Show more


Hi

why its E?..I thought its D according to formula
User avatar
Bunuel
User avatar
Math Expert
Joined: 02 Sep 2009
Last visit: 19 Nov 2025
Posts: 105,389
Own Kudos:
778,280
Given Kudos: 99,977
Products:
GMAT Club Tests Forum Quiz
Expert
Expert reply
Active GMAT Club Expert! Tag them with @ followed by their username for a faster response.
Posts: 105,389
Kudos: 778,280
If $1000 was invested at an annual interest rate of 5.6% compounded an 24 Jul 2014, 11:05
Kudos
Add Kudos
Bookmarks
Bookmark this Post
GGMAT760
FN
jimmyjamesdonkey
If $1,000 was invested at an annual interest rate of 5.6 % compounded annually, which of the following represents the amount the investment was worth after 3 years?

$1000(1.056)(3)
1,000(3 + 1.056)
1,000(1+3(0.056)
1,000[1+(0.056)^3]
1,000(1.056)^3

the formula is CI=P(1+r/100)^t

in this case i think E is the ans


Hi

why its E?..I thought its D according to formula
Show more

Substitute into the formula and see what you get or check here: if-1-000-was-invested-at-an-annual-interest-rate-of-64739.html#p1375378
User avatar
EMPOWERgmatRichC
User avatar
Major Poster
Joined: 19 Dec 2014
Last visit: 31 Dec 2023
Posts: 21,784
Own Kudos:
12,806
Given Kudos: 450
Status:GMAT Assassin/Co-Founder
Affiliations: EMPOWERgmat
Location: United States (CA)
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Expert
Expert reply
GMAT 1: 800 Q51 V49
GRE 1: Q170 V170
Posts: 21,784
Kudos: 12,806
If $1000 was invested at an annual interest rate of 5.6% compounded an 08 Dec 2019, 15:45
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hi All,

We're told that $1000 was invested at an annual interest rate of 5.6% COMPOUNDED ANNUALLY. We're asked which of the following represents the amount that the investment was worth after 3 years.

The Compound Interest Formula is one of two interest rate formulas that you need to know for Test Day. It is:

Principal x (1 + R)^T where R is the annual interest rate and T is the number of years (note: if interest is compounded MORE than once per year, you divide R by the number of calculations and multiply T by that same number of calculations).

Here, we're given all of the numbers to 'plug in', which gives us:

$1000(1 + 0.56)^3

Final Answer:
Show Spoiler
E


GMAT assassins aren't born, they're made,
Rich
User avatar
bumpbot
User avatar
Non-Human User
Joined: 09 Sep 2013
Last visit: 04 Jan 2021
Posts: 38,587
Own Kudos:
1,079
Posts: 38,587
Kudos: 1,079
If $1000 was invested at an annual interest rate of 5.6% compounded an 10 Jan 2024, 21:24
Kudos
Add Kudos
Bookmarks
Bookmark this Post
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
Moderators:
Bunuel
Math Expert
105389 posts
Krunaal
Tuck School Moderator
805 posts