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Gilbert deposits $200 into a bank account that earns interest at the 08 Nov 2018, 00:18
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Difficulty:

75% (hard)

Question Stats:

43% (01:34) correct 57% (01:18) wrong based on 54 sessions

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Gilbert deposits $200 into a bank account that earns interest at the rate of 8%. He makes no further transactions other than a $100 withdrawal after 3 years. Approximately how much money is in Gilbert’s account after he makes the withdrawal?

A. $124
B. $127
C. $148
D. $152
E. $224

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D
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Gilbert deposits $200 into a bank account that earns interest at the 08 Nov 2018, 03:09
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Gilbert deposits $200 into a bank account that earns interest at the rate of 8%. He makes no further transactions other than a $100 withdrawal after 3 years. Approximately how much money is in Gilbert’s account after he makes the withdrawal?

A. $124
B. $127
C. $148
D. $152
E. $224

p*r*t/100
= 200*8*3/100= 48 + 200= 248 after withdrawal100$ answer c 148$
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Gilbert deposits $200 into a bank account that earns interest at the 08 Nov 2018, 03:27
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Amount by the end of 3 years will be = \((1.08)^3*$200\)
Amount = approx $251.9

$100 are withdrawn. So remaining amount is $152.

OPTION: D
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Gilbert deposits $200 into a bank account that earns interest at the 18 Nov 2018, 11:05
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Bunuel
Gilbert deposits $200 into a bank account that earns interest at the rate of 8%. He makes no further transactions other than a $100 withdrawal after 3 years. Approximately how much money is in Gilbert’s account after he makes the withdrawal?

A. $124
B. $127
C. $148
D. $152
E. $224
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Bunuel

I think answer should be C here. Interest seems to be simple interest as nothing is mentioned about compounding. Also, when nothing is given, we usually take simple interest. Please confirm.
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Gilbert deposits $200 into a bank account that earns interest at the 06 Dec 2018, 08:41
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Bunuel
Gilbert deposits $200 into a bank account that earns interest at the rate of 8%. He makes no further transactions other than a $100 withdrawal after 3 years. Approximately how much money is in Gilbert’s account after he makes the withdrawal?

A. $124
B. $127
C. $148
D. $152
E. $224
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Official Explanation:



Gilbert made his $100 withdrawal after it earned interest, not before then. Calculate the interest on $200, and then subtract $100 from the total. Simple interest for three years would be 3 × 8% × 200 = $48, for a total of 200 + 48 − 100 = $148. So choose the answer that’s a little higher because the interest compounds. Choose (D).
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Gilbert deposits $200 into a bank account that earns interest at the 06 Dec 2018, 08:47
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Bunuel
Bunuel
Gilbert deposits $200 into a bank account that earns interest at the rate of 8%. He makes no further transactions other than a $100 withdrawal after 3 years. Approximately how much money is in Gilbert’s account after he makes the withdrawal?

A. $124
B. $127
C. $148
D. $152
E. $224

Official Explanation:



Gilbert made his $100 withdrawal after it earned interest, not before then. Calculate the interest on $200, and then subtract $100 from the total. Simple interest for three years would be 3 × 8% × 200 = $48, for a total of 200 + 48 − 100 = $148. So choose the answer that’s a little higher because the interest compounds. Choose (D).
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@Bunuel-I think the OA is incorrect here. When it the interest is compounded, it is always mentioned(without exceptions) that interest is compounded annually/semiannually. Here , it is quite clear that the interest is simple interest and not compound. So the answer should be C not D.

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This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
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Thank you for understanding, and happy exploring!
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