GRE Exam Numerical Ability Simple & Compound Interest

If an amount P is to be invested at an annual interest rate of 3.5 percent, compounded annually, what should be the value of P so that the value of the investment is $1,000 at the end of 3 years?

Read Solution (Total 1)

Use the formula A = P (1+ r/100)^n, where A=1000, r=3.5, n=3.
P=$901.94
9 years agoHelpfull: Yes(1) No(0)

GRE Other Question

If $10,000 is invested at a simple annual interest rate of 6 percent, what is the value of the investment after half a year A college student expects to earn at least $1,000 in interest on an initial investment of $20,000. If the money is invested for one year at interest compounded quarterly, what is the least annual interest rate that would achieve the goal?