Statement 1 has been transcribed incorrectly.
It should read as shown below:
$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years is given by D(t) = 10,000 [1+(r/100)}t. What amount will the deposit grow to in 3 years?
(1) D(1) = 11,000
(2) r =10
Disregard the given formula.
To determine the amount in the account after 3 years, we simply need to know the annual interest rate.
Question stem, rephrased:
What is the value of r?
Statement 1: D(1) = 11000
Since the $10000 deposit increases by 10% after 1 year, r=10.
SUFFICIENT.
Statement 2: r=10
SUFFICIENT.
The correct answer is
D.
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