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# What is the total amount of interest received by Pete?

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Intern
Joined: 06 May 2015
Posts: 45
Location: India
Schools: Darden '21
GPA: 4

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28 Sep 2018, 04:08
1
00:00

Difficulty:

25% (medium)

Question Stats:

79% (01:51) correct 21% (02:30) wrong based on 28 sessions

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Pete signed up for a 3 year investment contract that promises to pay him 3%, 5% and 10% in the respective years. All interest amounts are calculated annually and are reinvested in the contract. If his initial investment was €20,000 what is the total amount of interest received by Pete at the end of the contract?

A) €1793
B) €3793
C) €3973
D) €5973
E) €6793
Manager
Joined: 19 Apr 2017
Posts: 52
Re: What is the total amount of interest received by Pete?  [#permalink]

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28 Sep 2018, 05:53
Year 1 = 20,000*0.03 = 600
Year 2 = 20600*0.05= 1,030
Year 3 = 21630*0.1 = 2,163

Total Interest = 3,793 Answer B
Re: What is the total amount of interest received by Pete? &nbs [#permalink] 28 Sep 2018, 05:53
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