Home  >  GMAT  >  GMAT Data Sufficiency Practice Test 3

The parents of a newborn child allocated $20,000 of their savings to an investment that earns annual interest, compounded monthly. If there were no other transactions in the investment account, what is the amount of money (to the nearest cent) in the account 6 months after the account is opened? The compound-interest formula is , where A is the amount accumulated, P is the initial investment, r is the annual rate, n is the number of times interest is compounded per year, and nt is the total number of compounding periods. (1)The monthly rate on the investment is 0.0625%. (2)The annual rate, compounded monthly, on the investment is 0.75%.

🎲 Try a Random Question  |  Total Questions in Quiz: 20  |  🧠 Study this quiz with Flashcards
This question is part of a full practice quiz:
GMAT Data Sufficiency Practice Test 3 — practice the complete quiz, review flashcards, or try a random question.
🧠 Flashcards (fast review) 🧪 Practice Quiz ⚔️ Challenge a Friend 🥊

The parents of a newborn child allocated $20,000 of their savings to an investment that earns annual interest, compounded monthly. If there were no other transactions in the investment account, what is the amount of money (to the nearest cent) in the account 6 months after the account is opened? The compound-interest formula is <img alt='images' src='https://www.fatskills.com/images3/gmat/c0272-03.jpg'/>, where <em>A</em> is the amount accumulated, <em>P</em> is the initial investment, <em>r</em> is the annual rate, <em>n</em> is the number of times interest is compounded per year, and <em>nt</em> is the total number of compounding periods. (1)The monthly rate on the investment is 0.0625%. (2)The annual rate, compounded monthly, on the investment is 0.75%.






ADVERTISEMENT
 
❤ If you liked Fatskills, consider supporting us by checking out The Life Manuals You Never Got.

🌈  Our mission is to help improve your scores in any subject and exam withonline quizzes, practice tests, study guides, & advice for students. Since 2018.
About | Explore | User Guide | Topics | Subjects | Doubt Solver | Career Aptitude Test | Answers | Free Tools | What Should We Know?
Privacy | Terms |
Without work one finishes nothing. - Ralph Waldo Emerson
© 2026 Fatskills.com

All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks and brands does not imply endorsement.