1. Good post? |

## interest question

\$10,000 is deposited in a certain account that pays r percent annual interest compounded annually, the amount D(t), in dollars, that the deposit will grow to in t years is given by D(t) = 10,000{1+(r/100)}^t.

What amount will the deposit grow to in 3 years?

(1) D(t) = 11,000
(2) r =10

SPOILER:
Official Answer is D but i choice B reason being: in A it tells you that in time (t) D(t)=11,000 but we do not know the duration of "t", i.e. could be 1,2,3...etc years. I might be over analyzing the Q though!

2. Good post? |
Yeah, I'm not sure why it's not B, can you double check to make sure you copied the question correctly?

The original problem says they're looking for D(3), so all we need to know is r.

Statement 1: doesn't actually say that D(t) is the D(3), that statement could be used for any t and it would just let us solve for t.

Statement 2: this gives us the r we need, so now we can solve for D(3), which is \$13,310.

Statements 1&2: this will allow us to set 10,000{1+(10/100)}^t=11,000 and find t when D(t)=11,000, which would be after 1 year. This information is useless to us though, as we're looking for D(3).

Are you sure statement 1 didn't say "D(1)=11,000"? This would lead to D being the answer.

3. Good post? |
The question clearly states d(t) in A. Wierd!

4. Good post? |
Actually first option is D(3) ...seems like a misprint in sets

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