BREAKING: Target Test Prep releases Brand New 2026 On Demand GMAT prep course

Redeem
TTP OnDemand GMAT Video Course
Featured Course

Target Test Prep GMAT OnDemand

Scott Woodbury-Stewart’s private virtual classroom — 400 hours of master-class video lessons for the GMAT Focus Edition.

  • 715+ score guarantee — highest in the industry (99th percentile)
  • 52 chapters · 1,500+ lessons · 4,000+ practice questions
  • 400 hours of video · 1,500+ instructor-led HD smartboard lessons
  • 300,000+ students accepted to Harvard, Stanford, Wharton, Booth & Sloan & more
  • 24/7 live support + weekly Zoom office hours with GMAT instructors
  • TTP AI Assist — 24/7 AI-powered virtual tutor for instant help
  • 1,200+ flashcards + AI-powered study assistant & daily calendar
  • OnDemand, LiveTeach & GMAT Bootcamp formats available
  • Also: GRE, SAT Math & Executive Assessment courses
  • MBA Admissions Consulting now available
  • 🏆 2025 EdTech Breakthrough Award: Test Prep Solution Provider of the Year
  • 200,000+ students served
  • 5-day free trial — $0 to start, no auto-billing, cancel anytime
★★★★★ 5.0 (559 reviews)
130-pt guarantee
$0 to start then $127/mo
Start Free 5-Day Trial Read 559 Reviews →

Amy deposits \(\$100\) into an account that pays \(8\%\) interest, compounded semiannually. She makes no other deposits

Expert replies
Post new topic Post Reply
Previous Topic Next Topic
Legendary Member
Posts: 1622
Joined: Thu Mar 01, 2018 7:22 amFollowed by: 2 members
by Gmat_mission » Thu Nov 19, 2020 11:24 am

Timer

00:00

Answers

A

B

C

D

E

Stats

Difficulty—

Amy deposits \(\$100\) into an account that pays \(8\%\) interest, compounded semiannually. She makes no other deposits or withdrawals. Which of the following expresses the amount of money the account will contain in \(2\) years?

A. \(\$100 \cdot (1 + .04)^2\)

B. \(\$100 \cdot (1 + .04)^4\)

C. \(\$100 \cdot (1 + .04)^6\)

D. \(\$100 \cdot (1 + .08)^2\)

E. \(\$100 \cdot (1 + .08)^6\)

Answer: B

Source: Princeton Review
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Source: — Problem Solving |

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 8155
Joined: Sat Apr 25, 2015 10:56 amFollowed by: 29 members
Location: Los Angeles, CA
Thanked: 43 times

Re: Amy deposits \(\$100\) into an account that pays \(8\%\) interest, compounded semiannually. She makes no other depos

by Scott@TargetTestPrep » Wed Nov 25, 2020 8:30 am
Gmat_mission wrote: ↑
Thu Nov 19, 2020 11:24 am
 Amy deposits \(\$100\) into an account that pays \(8\%\) interest, compounded semiannually. She makes no other deposits or withdrawals. Which of the following expresses the amount of money the account will contain in \(2\) years?

A. \(\$100 \cdot (1 + .04)^2\)

B. \(\$100 \cdot (1 + .04)^4\)

C. \(\$100 \cdot (1 + .04)^6\)

D. \(\$100 \cdot (1 + .08)^2\)

E. \(\$100 \cdot (1 + .08)^6\)

Answer: B

Solution:

We can use the compound interest formula:

A = P(1 + r/n)^(nt)

Here, P = 100, r = 8% = 0.08, n = 2 (because semiannually), and t = 2. Therefore, we have:

A = 100(1 + 0.08/2)^(2 x 2)

A = 100(1 + 0.04)^4

Answer: B

Scott Woodbury-Stewart
Founder and CEO
[email protected]

Image

See why Target Test Prep is rated 5 out of 5 stars on BEAT the GMAT. Read our reviews

ImageImage
Top
Join the discussion
Log in to postLogin with Googleuse password
QUOTE IN REPLY
Post new topic Post Reply
• Page 1 of 1