Sarah invested $38,700 in an account that paid 6.2% annual interest, compounding monthly. She left the money in this account, collecting interest for three full years. Approximately how much interest did she earn in the last month of this period?
(A) $239.47
(B) $714.73
(C) $2793.80
(D) $7,888.83
(E) $15,529.61
This is a question that lends itself well to estimation. For a full discussion of simple & compound interest, as well as the OA & OE for this problem, see:
https://magoosh.com/gmat/2014/compound-i ... -the-gmat/
Mike
(A) $239.47
(B) $714.73
(C) $2793.80
(D) $7,888.83
(E) $15,529.61
This is a question that lends itself well to estimation. For a full discussion of simple & compound interest, as well as the OA & OE for this problem, see:
https://magoosh.com/gmat/2014/compound-i ... -the-gmat/
Mike
Magoosh GMAT Instructor
https://gmat.magoosh.com/
https://gmat.magoosh.com/
