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A savings account accrues 5% interest at the end of every fo

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Intern
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A savings account accrues 5% interest at the end of every fo [#permalink] New post 11 Oct 2017, 12:59
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A savings account accrues 5% interest at the end of every four months. Given an initial savings deposit of s, if an extra 10 dollars was deposited into the account immediately after the first year, which of the following choices represents the ending balance of the savings account after y years, where y > 1?


A. (s)^3y - 3(1.05) + (10)^3y(1.05)

B. (s)^3y(1.05) + (10)3y-3(1.05)

C. (s)(1.05)^3y + (10)3y - 3

D. (s)(1.05)^3y - 3 + (10)3y

E. (s)(1.05)^3y + (10)(1.05)^3y - 3
[Reveal] Spoiler: OA

Last edited by Bunuel on 11 Oct 2017, 20:48, edited 2 times in total.
Renamed the topic and edited the question.
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Re: Interest Question [#permalink] New post 11 Oct 2017, 14:39
Expert's post
We have an intial amount s that get intrest for y years.

Now rate of interest is 5% and compunded every 4 months.

So after y years the amount would be = s \times (1 + \frac{5}{100})^{y \times 3}

Also an additional 10 dollars will accrue interest over y-1 years = 10 \times (1 + \frac{5}{100})^{(y-1) \times 3}

Hence option E is correct!

PS: I do not think this is a GRE Question please share the source


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Re: Interest Question [#permalink] New post 11 Oct 2017, 16:44
Hi, it's from Manhattan online resources. BTW why you're thinking it's not a GRE question?
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Re: Interest Question [#permalink] New post 11 Oct 2017, 18:56
Expert's post
f4h6 wrote:
Hi, it's from Manhattan online resources. BTW why you're thinking it's not a GRE question?


Thanks for sharing the source. I can't recall seeing any compund interest questions. Manhattan is a pretty robust source though.
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Re: Interest Question   [#permalink] 11 Oct 2017, 18:56
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