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SAT Mathematics Practice Test 4

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Question : 34

Total: 58

1,000(1+

)12
The expression above gives the amount of money, in dollars, generated in a year by a $1,000 deposit in a bank account that pays an annual interest rate of r %, compounded monthly. Which of the following expressions shows how much additional money is generated at an interest rate of 5% than at an interestrate of 3% ?

1,000(1+
5−3
1,200
)12
1,000(1+
5
3
1,200
)12
1,000(1+
5
1,200
)12
1,000(1+
3
1,200
)12
1,000(1+
5
1,200
)12−1,000(1+
3
1,200
)12

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