Question

A $1,600.00 Principal earns 7% interest, compounded semiannually twice per year. After 33 years, what is the balance in the account?

A. $4,979.11
B. $14,920.54
C. $112,992.00
D. $15,494.70

Answer 1

$15,494.70

Explanation:

Compounding twice year, 3.5% each, 66 times

result=$1,600*1.035^66 = $15,494.70

Answer 2

Total = 1,600 * (1 + .07/2)^(2*33)
Total = 1,600 * (1.035)^66
Total = 1,600 * 9.6841852012
Total = 15,494.70
Answer is D