How much money will you have at the end of one year if interest is compounded semiannually at 10% on a $600 deposit?
a. $662.00
b. $660.00
c. $659.50

Answer :

toporc
The formula required to answer this is:
[tex]A=P(1+\frac{r}{n})^{nt}[/tex]
where  A is the amount of the principal P after n compounding periods per year at r interest rate (as a decimal fraction).
Plugging in the given values, we get:
[tex]A=600(1+\frac{0.1}{2})^{2\times1}=661.5[/tex]
Rounding to the nearest dollar, we get $662.00. Therefore a is the best answer choice.

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