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31 May 2008, 14:17
3
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Difficulty:

15% (low)

Question Stats:

76% (00:56) correct 24% (01:13) wrong based on 539 sessions

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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. $$1000 (1.056)^3$$ Current Student Joined: 28 Dec 2004 Posts: 2458 Location: New York City Schools: Wharton'11 HBS'12 Re: If$1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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31 May 2008, 14:22
1
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] ### Show Tags 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 Manager Joined: 21 Oct 2013 Posts: 175 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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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] ### Show Tags 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 Math Expert Joined: 02 Sep 2009 Posts: 60647 Re: If$1000 was invested at an annual interest rate of 5.6% compounded an  [#permalink]

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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] ### Show Tags 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 Final Answer: GMAT assassins aren't born, they're made, Rich _________________ Contact Rich at: Rich.C@empowergmat.com The Course Used By GMAT Club Moderators To Earn 750+ souvik101990 Score: 760 Q50 V42 ★★★★★ ENGRTOMBA2018 Score: 750 Q49 V44 ★★★★★ 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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