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08 Mar 2019, 01:15
00:00

Difficulty:

95% (hard)

Question Stats:

18% (01:31) correct 82% (01:49) wrong based on 33 sessions

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If Asif invests $1,20,000, what will be the closet amount with 10% interest, compound annually, after 3 years? A. 1,55,000 B. 1,58,000 C. 1,59,000 D. 1,59,500 E. 1,60,000 NUS School Moderator Joined: 18 Jul 2018 Posts: 1024 Location: India Concentration: Finance, Marketing WE: Engineering (Energy and Utilities) Re: If Asif invests$1,20,000, what will be the closet amount with 10%  [#permalink]

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08 Mar 2019, 01:51
1
consider 120,000 as 120 for simpler calculation.
then CI = $$120(1.10)^3$$ = 159.720
which is closer to 159500 than 160000.
As the difference between 159500 is 220 and that of 160000 is 270.

Shouldn't the answer be D? rather than E.
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08 Mar 2019, 02:02
1
If the options hadn't contained 159500, I would have chosen E. But, D is closer to me.
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Manager
Joined: 26 Nov 2018
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Concentration: Technology, Entrepreneurship
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08 Mar 2019, 02:21
1
Yes, I know. We should always round it to the nearer largest available value.
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20 Mar 2019, 21:11
I agree that d is closer
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