The formula for compounded interest can be defined as A = p (1 + r)ⁿ , where A is the total value of the investment, p is the principle invested, r is the interest rate per period, and n is the number of periods. If a \1,000{ principle is invested, which bank gives a better interest rate for a savings account, Bank A or Bank B? (1) The interest rate at Bank }A{ is }4 \%{ compounded annually. (2) The total amount of interest earned at Bank B over a period of five years is }\{ 276.28}.

Question

Examsnet · Accepted Answer

Correct Answer is : The problem can be solved using statement (1) and statement (2) TOGETHER, but not ONLY statement (1) or statement (2).

GMAT Quantitative Reasoning Practice Test 6