**Quote:**

You are told that the investment increases by *n*%, which is *n*/100.

That's exactly what we are told.

*n*% =

*n*/100, not

*n*% =

*n*.

If

*n* was 0.08, then

*n*% would be (0.08)% = 0.08 × (1/100) = 0.0008

Plug in a value for

*n* in the wording of the question to feel the difference:

"Which of the following represents the profit from the investment of

*x* dollars at

**10** percent compound annual interest for 3 years?"

**vs.**"Which of the following represents the profit from the investment of

*x* dollars at

**10%** percent compound annual interest for 3 years?", which is the same as

"Which of the following represents the profit from the investment of

*x* dollars at

**0.1** percent compound annual interest for 3 years?"