# Free SAT Practice Questions

Question 1 of 1
ID: SAT-HOA-10
Section: Math - Heart of Algebra
Topics: Heart of Algebra; Compounding
Difficulty level: Hard

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$X=P\left[1-{\left(1+\dfrac{r}{100}\right)}^n\right]$

Which of the following correctly describe$\ X$? (without calculator)

AIt is the value of the compound interest earned for a sum of \$$P invested for n years at the rate of \left(\frac{r}{2}\right) percent per annum compounded half-yearly. BIt is the value of the compound interest earned for a sum of \$$P$invested for$\left(\frac{n}{4}\right)$years at the rate of$\left(\frac{r}{4}\right)$percent per annum compounded quarterly. CIt is the value of the compound interest earned for a sum of \$$P invested for n years at the rate of 2r percent per annum compounded half-yearly. DIt is the value of the compound interest earned for a sum of \$$P$ invested for $\left(\frac{n}{4}\right)$ years at the rate of $4r\$percent per annum compounded quarterly.