Hi Gunner77 and tinuviel07,
There is nothing wrong with the question but the answer given is
incorrect. This question is an actual past "O" level E. Maths exam
question. However, the answer given by the publisher is wrong. The
correct answer is $20,606.02.
Method 1 : This method is commonly used by
E. Maths students
Amount at end of 1st
month
= $20000 + 0.01 x $20000 = $20,200
Amount at end of 2nd
month
= $20,200 + 0.01 x $20,200 = $20,402
Amount at end of 3rd
month
= $20,402 + 0.01 x $20,402 = $20,606.02
Method 2 : Short-cut
Method
Amount at end of 3rd
month
Amount at end of 3rd month
= (1.01)^3 X $20,000 = $20,606.02
Thank you for your kind attention.
Regards,
ahm97sic
THANKS AHM97SIC!
u come to my rescue again 