A sum of 500 dinars is invested at 10% compound interest per year. What is the total after 3 years?
Answer and explanation
Correct answer: C. 665.5
- Step 1: Each year the amount is multiplied by .
- Step 2: After 3 years: 500 x = 665.5.
Answer
665.5.
Why not the others: 650: simple interest was used instead of compound interest. 651: the interest was calculated once and then adjusted incorrectly. 150: this is the interest only, not the total.
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