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# Peter invests \$100,000 in an account that pays 12%

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Re: Peter invests \$100,000 in an account that pays 12% [#permalink]
Question: how to complete a problem like this in under 2 minutes that involves significant calculation?

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Re: Peter invests \$100,000 in an account that pays 12% [#permalink]
VeeB wrote:
Question: how to complete a problem like this in under 2 minutes that involves significant calculation?

Posted from my mobile device

To avoid significant calculation it's best to leverage the answer choices, as a prior response indicates.

The answer choices are factors of 10 apart, meaning that estimating with some inaccuracy will be good enough.

A general understanding of compound interest should eliminate A immediately.

Similarly, D&E should be obviously too large given the base level of interest is \$12000 and the compounding effect monthly would never generate those differences.

This leaves B&C and just a few calculations should show that B will be too small.
Re: Peter invests \$100,000 in an account that pays 12% [#permalink]
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