#### How I can solve this math in a minutes without multiplying 1.10 for 10 times.If $1000 is invested in a account paying 10% compounded monthly, how much would be the nearest ending balance at the end of 10 years?
5-Day Free Trial
5-day free, full-access trial TTP
Available with Beat the GMAT members only code
MORE DETAILS
If $1000 is invested in a account paying 10% compounded mont
This topic has expert replies
-
DavidG@VeritasPrep
- Legendary Member
- Posts: 2663
- Joined: Wed Jan 14, 2015 8:25 am
- Location: Boston, MA
- Thanked: 1153 times
- Followed by:128 members
- GMAT Score:770
Well, the bad news is that if we're compounding monthly, over a period of 10 years, there will be 120 compounding periods. The good news is that the GMAT would never ask you to do that arithmetic.emdadul28 wrote:#### How I can solve this math in a minutes without multiplying 1.10 for 10 times.If $1000 is invested in a account paying 10% compounded monthly, how much would be the nearest ending balance at the end of 10 years?
-
DavidG@VeritasPrep
- Legendary Member
- Posts: 2663
- Joined: Wed Jan 14, 2015 8:25 am
- Location: Boston, MA
- Thanked: 1153 times
- Followed by:128 members
- GMAT Score:770
For some examples of actual GMAT interest rate questions, see here:
https://www.beatthegmat.com/interest-t280192.html
or here:
https://www.veritasprep.com/blog/2016/0 ... -the-gmat/
or here:
https://www.beatthegmat.com/interest-pro ... 92658.html
https://www.beatthegmat.com/interest-t280192.html
or here:
https://www.veritasprep.com/blog/2016/0 ... -the-gmat/
or here:
https://www.beatthegmat.com/interest-pro ... 92658.html
GMAT/MBA Expert
-
Brent@GMATPrepNow
- GMAT Instructor
- Posts: 16207
- Joined: Mon Dec 08, 2008 6:26 pm
- Location: Vancouver, BC
- Thanked: 5254 times
- Followed by:1268 members
- GMAT Score:770
I agree with David.
For a question like that, you'd likely be given answer choices that show the calculations one would need to make in order to determine the interest.
Here's an example (from the 10th edition of the Official Guide) of such a question: https://www.beatthegmat.com/compound-int ... 72570.html
Cheers,
Brent
For a question like that, you'd likely be given answer choices that show the calculations one would need to make in order to determine the interest.
Here's an example (from the 10th edition of the Official Guide) of such a question: https://www.beatthegmat.com/compound-int ... 72570.html
Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
GMAT/MBA Expert
-
[email protected]
- Elite Legendary Member
- Posts: 10392
- Joined: Sun Jun 23, 2013 6:38 pm
- Location: Palo Alto, CA
- Thanked: 2867 times
- Followed by:511 members
- GMAT Score:800
Hi emdadul28,
The GMAT would never give you a question that actually required such a heavy number of calculations to solve. That having been said, if you included the 5 answer choices, then there might be a way to answer this question WITHOUT having to do a lot of math - you might use estimation, eliminate answers as being too big or too small, use the 'rule of 72' or some other approach.
GMAT assassins aren't born, they're made,
Rich
The GMAT would never give you a question that actually required such a heavy number of calculations to solve. That having been said, if you included the 5 answer choices, then there might be a way to answer this question WITHOUT having to do a lot of math - you might use estimation, eliminate answers as being too big or too small, use the 'rule of 72' or some other approach.
GMAT assassins aren't born, they're made,
Rich
