Question

Arianna deposits $500 in an account that pays 3% interest, compounded semiannually. How much is in the account at the end of 2 years.

Answer 1

1•3 × $500

100

1.3 × 10 × $500

100× 10

13 × $500

1000

=$6.5 semi annually

end of two years.....

6.5 × 4

=$26

in account.....

$500+$26

=$526