Question

An account is opened with an initial deposit of $700 and earns 3.3% interest compounded semi-annually. What will the account be worth in 3 years? Round your answer to the nearest cent.

Answer 1

772.22

Explanation:

A=$700(1+0.0332)2(3). Simplify using the order of operations: A=$700(1.0165)6=$700(1.103174712)≈$772.22.