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August 9th, 2014, 05:49 AM   #1
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[Compound Interest] The Question is a bit Ambiguous?

I was working on writing explanation for National Exam practice when I encountered a bit ambiguous question.

Early in each months repays his duty to repay his debts to "Bank Pembangunan" as much as 200,000.00 IDR for 3 months. If Dodi wants to repay all his debts early in the first month and the bank charges 3.5% of compound interest per month, the amount of money Dody has to pay is ...
A. 560,320.00 IDR
B. 506,320.00 IDR
C. 579,940.00 IDR
D. 397,940.00 IDR
E. 379,940.00 IDR

I am confused as how to solve this. At first I thought that the amount of debt was 200,000.00 IDR, but after I solved it, the answer was not in the options. Then I thought the debt was 600,000.00 IDR, but obviously it was also not in the options. Does anyone know the clear interpretation of this question? And please give me some hints to solve it. Thanks.
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August 9th, 2014, 03:21 PM   #2
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Annuity due problem.
Google it up. Wiki it up.
Answer is C.
Too much rounding though.
200000+200000 (1.035)^(-1)+200000(1.035)^(-2) - Wolfram|Alpha Results
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August 9th, 2014, 08:08 PM   #3
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Thanks for the help.
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