A $5,000 investment can be placed into an account that earns 10 percent simple interest for 2 years or 10 percent compou

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Vincen: Legendary Member; Posts: 2898; Joined: Thu Sep 07, 2017 2:49 pmFollowed by: 5 members; Thanked: 6 times

by Vincen » Wed Dec 16, 2020 3:52 am

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A $5,000 investment can be placed into an account that earns 10 percent simple interest for 2 years or 10 percent compound interest for 2 years. How many additional dollars of interest will be earned by investing the $5,000 in the compound interest account?

A. 10
B. 50
C. 100
D. 200
E. 500

Answer: B

Source: EMPOWERgmat

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Source: Beat The GMAT — Problem Solving | Wed Dec 16, 2020 3:52 am

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