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.

Thank you for using the timer!
We noticed you are actually not timing your practice. Click the START button first next time you use the timer.
There are many benefits to timing your practice, including:

Nov. 17, 7 AM PST. Aiming to score 760+? Attend this FREE session to learn how to Define your GMAT Strategy, Create your Study Plan and Master the Core Skills to excel on the GMAT.

If A is the initial amount put into an account, R is the ann
[#permalink]

Show Tags

22 Jan 2014, 12:32

1

6

00:00

A

B

C

D

E

Difficulty:

55% (hard)

Question Stats:

65% (02:12) correct 35% (01:45) wrong based on 157 sessions

HideShow timer Statistics

If A is the initial amount put into an account, R is the annual percentage of interest written as a decimal, and the interest compounds annually, then which of the following would be an expression, in terms of A and R, for the interest accrued in three years? (A) \(A(R)^3\) (B) \(A(R + R^3)\) (C) \(A(3R + 3R^2 + R^3)\) (D) \(3A(R)^3\) (E) \(3A(R + R^2 + R^3)\)

Re: If A is the initial amount put into an account, R is the ann
[#permalink]

Show Tags

02 May 2017, 13:49

1

Proud to say I initially got this question wrong a few months ago on Magoosh, and just got it right in 2 minutes today

Year 1: A(1+R) Year 2: A(1+R)(1+R) = A(1+2R+R^2) = A+2RA+AR^2 Year 3: (A+2RA+AR^2)(1+R) = A+2RA+R^2A+RA+2R^2A+R^3A Simplify: A+3RA+3R^2A+R^3A Factor out an A: A(3R+3R^2+R^3) Answer C

If A is the initial amount put into an account, R is the ann
[#permalink]

Show Tags

21 Jul 2018, 09:31

Hi there,

Don't mess with formulas, but pick good numbers. Let's say we have A=$100, R=1 (100% annual interest), so in 1 year we have to get total $100 ours + $100 from interest = $200. Do you see the pattern? $100 (1+1) = $200, so for 3 years Total ammount = $100*(1+1)(1+1)(1+1) = $800, now exclude our own $100, and you will get $700 as profit for 3 years. Check what option will give you $700 with A=$100 and R=1. Only option C does so.

P.S. In case of simple (not compound) interest the formula for interest (only) will look like: $100*1 + $100*1 + $100*1 = $300

gmatclubot

If A is the initial amount put into an account, R is the ann &nbs
[#permalink]
21 Jul 2018, 09:31