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GRE Prep Club Team Member
Joined: 20 Feb 2017
Posts: 2506
Given Kudos: 1055
GPA: 3.39
Nathan took out a student loan for 1200$ at 10 percent annual interest
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10 Dec 2022, 02:19
10 Dec 2022, 02:19
Expert Reply
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Question Stats:
85% (01:07) correct
14% (01:12) wrong based on 7 sessions
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Nathan took out a student loan for 1200$ at 10 percent annual interest, compounded annually. If he did not repay any of the loan or interest during the first 3 years, which of the following is the closest to the amount of interest he owed for the 3 years.
A. 360
B. 390
C. 400
D. 410
E. 420
A. 360
B. 390
C. 400
D. 410
E. 420
Re: Nathan took out a student loan for 1200$ at 10 percent annual interest
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11 Dec 2022, 13:31
11 Dec 2022, 13:31
1
Expert Reply
Principal amount is : 1200
Total amount after
1st yr = 1200 x 1.1 = 1320
2nd yr = 1320 x 1,1 = 1452
3rd yr = 1452 x 1.1 = 1597.2
Amount of interest he owed after 3 years = 1597.2 - 1200 = 397.2 ....... The closest value is 400.
Total amount after
1st yr = 1200 x 1.1 = 1320
2nd yr = 1320 x 1,1 = 1452
3rd yr = 1452 x 1.1 = 1597.2
Amount of interest he owed after 3 years = 1597.2 - 1200 = 397.2 ....... The closest value is 400.
gmatclubot
Re: Nathan took out a student loan for 1200$ at 10 percent annual interest [#permalink]
11 Dec 2022, 13:31
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