Question

Jessica deposits $300 into a savings account that pays an annual interest rate of 2%, compounded twice a year. How much money will Jessica have in her account at the end of one year?

Answer 1

A=300×(1+0.02÷2)^(2)
A=306.03

Answer 2

$312 would be in the account. 2% of $300 is $6 and if interest rates are compounded twice a year it would be $12 extra at the end of the year.