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Little Miss Buffet takes all the money from her piggy bank and puts it into a savings account at her local bank. The bank promises an annual interest rate of 2.5% on the balance, compounded semiannually. How much will she have after one year if her initial deposit was $200?

A) $205.00
B) $205.01
C) $205.02
D) $205.03

User Emre Bener
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1 Answer

2 votes
Fv=200×(1+0.025÷2)^(2)
Fv=205.03
User TimB
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