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# If $1000 was invested at an annual interest rate of 5.6% compounded an SORT BY: Tags: Show Tags Hide Tags Senior Manager Joined: 01 May 2007 Posts: 484 Own Kudos [?]: 1465 [22] Given Kudos: 0 Current Student Joined: 28 Dec 2004 Posts: 1578 Own Kudos [?]: 646 [3] Given Kudos: 2 Location: New York City Concentration: Social Enterprise Schools:Wharton'11 HBS'12 SVP Joined: 27 Dec 2012 Status:The Best Or Nothing Posts: 1558 Own Kudos [?]: 7303 [1] Given Kudos: 193 Location: India Concentration: General Management, Technology WE:Information Technology (Computer Software) Manager Joined: 21 Oct 2013 Posts: 152 Own Kudos [?]: 217 [2] Given Kudos: 19 Location: Germany GMAT 1: 660 Q45 V36 GPA: 3.51 Re: If$1000 was invested at an annual interest rate of 5.6% compounded an [#permalink]
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1000 * 1.056 * 1.056 * 1.056 = 1000 * 1.056^3. E.
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an [#permalink] FN wrote: jimmyjamesdonkey wrote: 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 Math Expert Joined: 02 Sep 2009 Posts: 94609 Own Kudos [?]: 643615 [0] Given Kudos: 86737 Re: If$1000 was invested at an annual interest rate of 5.6% compounded an [#permalink]
Expert Reply
GGMAT760 wrote:
FN wrote:
jimmyjamesdonkey wrote:
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

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
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an [#permalink] Expert Reply 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: GMAT assassins aren't born, they're made, Rich Non-Human User Joined: 09 Sep 2013 Posts: 34074 Own Kudos [?]: 853 [0] Given Kudos: 0 Re: If$1000 was invested at an annual interest rate of 5.6% compounded an [#permalink]
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Re: If \$1000 was invested at an annual interest rate of 5.6% compounded an [#permalink]
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