Answer:
Explanation:
To calculate the amount of money David will have in his account after 10 years, we can use the formula for compound interest:
A = P(1 + r/n)^(nt)
Where:
A is the amount of money at the end of the period
P is the principal amount (the initial investment)
r is the annual interest rate (as a decimal)
n is the number of times the interest is compounded per year
t is the time in years
In this case, we have:
P = $300 (the initial investment)
r = 0.023 (the annual interest rate of 2.3% as a decimal)
n = 2 (the interest is compounded semiannually, or twice per year)
t = 10 (the time period in years)
Plugging these values into the formula, we get:
A = 300(1 + 0.023/2)^(2*10)
A = 300(1.0115)^20
A = $388.68
Therefore, David will have $388.68 in his account after 10 years if he keeps his initial investment of $300 in an account with a 2.3% interest rate that is compounded semiannually.