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if $1000 were invested at 5.6% {exam in THREE days Help!)

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by swutherton » Tue Oct 26, 2010 11:06 am
The answer is 'e', seems straight forward unless I am missing something:

P(1+r/100)^T = 1000(1+(5.6/100))^3=1000(1.056)^3
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by chocoswiss » Tue Oct 26, 2010 11:18 am
u're right


oh man, with three days left i should be revising my basic formulae instead of taking more prac test
somehow i thought i dont need to know formulae for cmpd interest, standard dev etc for gmat
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by swutherton » Tue Oct 26, 2010 11:51 am
Well in this question you actually dont. Two answers give you a total of over 3000, and the other two less than 1001. If you are investing your money for 3 years at 5.6% and tripling the amount then there is something shady going on, likewise if you earn only $1 then it aint worth investing :)
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by goyalsau » Wed Oct 27, 2010 12:59 am
swutherton wrote:Well in this question you actually dont. Two answers give you a total of over 3000, and the other two less than 1001. If you are investing your money for 3 years at 5.6% and tripling the amount then there is something shady going on, likewise if you earn only $1 then it aint worth investing :)
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by crisro » Sat Jan 07, 2012 4:31 pm
swutherton wrote:Well in this question you actually dont. Two answers give you a total of over 3000, and the other two less than 1001. If you are investing your money for 3 years at 5.6% and tripling the amount then there is something shady going on, likewise if you earn only $1 then it aint worth investing :)
wrong, third answer gives 1,168 and the last fifth 1,177.
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by crisro » Sat Jan 07, 2012 4:54 pm
any of the experts can give an advice on this?
Thank you.
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