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If $1000 was invested at an annual interest rate of 5.6% compounded an

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If $1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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New post 31 May 2008, 14:17
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A
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D
E

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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. \(1000 (1.056)^3\)
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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New post 31 May 2008, 14:22
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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
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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New post 14 May 2014, 23:58
1
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



It should be Amount instead of CI

CI amount calculated as below:

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

CI = Amount - P
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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New post 20 Jun 2014, 01:20
1
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]

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New post 24 Jul 2014, 11:02
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
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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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New post 24 Jul 2014, 11:05
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]

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New post 08 Dec 2019, 15:45
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

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Re: If $1000 was invested at an annual interest rate of 5.6% compounded an   [#permalink] 08 Dec 2019, 15:45
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