Interest: Compound Interest
Stewie deposits $5,000 at a compounded interest rate. How much interest will Stewie earn after 3 years?
>(1) The interest is compounded monthly.
>(2) The annual rate of interest is 6%.
Correct.
[[snippet]]
According to Stat. (1), you do not know the interest rate. **Stat.(1) → IS → BCE**.
According to Stat. (2), you do not know the number of interest periods per year. **Stat.(2) → IS → CE**.
According to Stat. (1+2), you know both the interest rate and the number of periods per year, and thus you can calculate the interest for 3 years (though you don't need to—just know that you _can_ calculate it).
The interest is the total sum after 3 years minus the principal:
>$$\text{Interest} = 5{,}000\left(1+\frac{0.06}{12}\right)^{(12)(3)} - 5{,}000$$.
**Stat.(1+2) → S → C**.
Incorrect.
[[snippet]]
According to Stat. (1), you do not know the interest rate. **Stat.(1) → IS → BCE**.
According to Stat. (2), you do not know the number of interest periods per year. **Stat.(2) → IS → CE**.
According to Stat. (1+2), you know both the interest rate and the number of periods per year, and thus you can calculate the interest for 3 years (though you don't need to—just know that you _can_ calculate it).
The interest is the total sum after 3 years minus the principal:
>$$\text{Interest} = 5{,}000\left(1+\frac{0.06}{12}\right)^{(12)(3)} - 5{,}000$$.
**Stat.(1+2) → S → C**.
Incorrect.
[[snippet]]
According to Stat. (1), you do not know the interest rate. **Stat.(1) → IS → BCE**.
Incorrect.
[[snippet]]
According to Stat. (2), you do not know the number of interest periods per year. **Stat.(2) → IS → ACE**.
Statement (1) ALONE is sufficient, but Statement (2) alone is not sufficient to answer the question asked.
Statement (2) ALONE is sufficient, but Statement (1) alone is not sufficient to answer the question asked.
BOTH Statements (1) and (2) TOGETHER are sufficient to answer the question asked, but NEITHER statement ALONE is sufficient to answer the question asked.
EACH statement ALONE is sufficient to answer the question asked.
Statements (1) and (2) TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed.
