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