DSQ: Calculating compound interest
Practice Questions
GMAT Quantitative Reasoning › DSQ: Calculating compound interest
John deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years?
Statement 1: John deposited $5,000.
Statement 2: The interest is compounded monthly.
Jenna needs 
What amount of money does Jenna need to invest today?
(1)
(2)
Joe invests $4,000 in a certificate of deposit that accrues interest that is compounded monthly. What is the annual interest rate?
Statement 1: During the first month, the certificate drew $7.83 in interest.
Statement 2: During the second month, Joe drew $7.85 in interest.
Natasha decides to invest her entire Christmas bonus in a certificate of deposit that pays 2.15% annual interest, compounded monthly. At the end of five years, how much will that certificate of deposit be worth?
Statement 1: Natasha was given a $3,000 Christmas bonus.
Stateent 2: Natasha earns an annual salary of $54,000.
At the beginning of January of 2015, Olga invested one half of the money she earned in December of 2014 in a certificate of deposit that pays 3.15% annual interest, compounded monthly. At the end of six years, how much will that certificate of deposit be worth?
Statement 1: Olga earned $63,000 in 2014.
Stateent 2: Olga earned the same amount of money each month in 2013.
Quincy invests $30,000 in a certificate of deposit that draws compound interest. How frequently is the interest compounded - monthly, bimonthly, or quarterly?
Statement 1: The first interest payment is 0.964% of the principal.
Statement 2: The first interest payment is $289.20
Mitchell deposits an amount of money in a savings account that pays compound interest. He does not deposit or withdraw during that time. How much money does he have at the end of five years?
Statement 1: Mitchell deposited $10,000.
Statement 2: The savings account draws annual interest of 2.12%, compounded quarterly.
Tyler invests $20,000 in a certificate of deposit that draws compound interest. How frequently is the interest compounded - monthly, bimonthly, or quarterly?
Statement 1: The certificate draws 3.15% annual compound interest.
Statement 2: The certificate draws $638.33 the first year.