Percentages

SAT Math· difficulty 4/5

\1{,}000isinvestedatis invested at4%annualinterest,compoundedyearly.Whatisthebalanceafterannual interest, compounded yearly. What is the balance after3$ years?

  • A

    $1{,}120.00

  • B

    $1{,}124.86

    check_circle
  • C

    $1{,}125.00

  • D

    $1{,}124.86

Explanation

10001.043=10001.124864=1124.861000 \cdot 1.04^3 = 1000 \cdot 1.124864 = 1124.86.

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