Question

Find the balance in the account.

$4,100 principal earning 2.25%, compounded semi-annually, after 12 years

a. $5,362.76

b. $5,354.80

c. $4,689.07

d. $100,614.00

Answer 1

`A = P(1 +(r)/(n))^(nt)`

P = 4100

r = 2.25% = 0.0225

n= 2

t= 12

`A = 4100(1 + (0.0225)/(2))^(24)\\`

`= 4100 *1.01125^(24)\\\\= \$ 5362.76`

Option a.