Q14:
$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(t) = 11,000
(2) r =10
OA is D. My answer would be B.
I found this explanation on web but i was not able to understand it.
"The formula for compounde intrest is D{t,c}= Deposit{1+(r/c)}^tc when t is the Time of deposit r is Rate and c is the number of compounde calculations in each period of time.
By comparing the given formula by general formula and the mentioned 3 years in the question it will be obviouse that each statment alone can answer the question. Because all we need is r and the rest is given."
Thanks,
$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(t) = 11,000
(2) r =10
OA is D. My answer would be B.
I found this explanation on web but i was not able to understand it.
"The formula for compounde intrest is D{t,c}= Deposit{1+(r/c)}^tc when t is the Time of deposit r is Rate and c is the number of compounde calculations in each period of time.
By comparing the given formula by general formula and the mentioned 3 years in the question it will be obviouse that each statment alone can answer the question. Because all we need is r and the rest is given."
Thanks,
