compound interest problems

[Thundercatz]

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Hi,

Are there compound interest problems on the real DAT? Im going through the concepts and wanted to know if I should learn this?

Anyone seen one at the DAT recently???

 

[osimsDDS]

its usually like this:

I= P(1+r)^t

P=principle
r=rate in percent
t=time

So lets say you have 1000 at 5% compound interest, what will be the interest in 3 years...

I= 1000(1+.05)^3
I= 1,157 close enough

 

[Mstoothlady2012]

its usually like this:

I= P(1+r)^t

P=principle
r=rate in percent
t=time

So lets say you have 1000 at 5% compound interest, what will be the interest in 3 years...

I= 1000(1+.05)^3
I= 1,157 close enough

That's is not the interest after 3 years. That's the amount w/ interest that you would have to pay after 3 years.

Interest would be 1157-1000 = 157

Just wanna clear it up 😀