Question

Marilee 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 $400?

A) $390.06
B) $420.25
C) $410.06
D) $420.50

Answer 1

the answer is c if you need explaination i can give it

Answer 2

She have $ 410.06 in account after 1 year.

Option C is correct

Explanation:

Marilee takes all the money from her piggy bank and puts it into a savings account at her local bank.

We need to find saving amount after 1 year.

Formula:
`A=P(1+(r)/(n))^(nt)`

Where,

A is final amount in account.

P is initial deposit (P=$400)

r is rate of interest (r=0.025)

t is time period (t=1)

n is number of period per year (n=2)

Now we will substitute the value of P, r, n and t into formula and solve for A

`A=400(1+(0.025)/(2))^(2)`

`A=400(1.02515)`

A=$ 410.06

Hence, She have $ 410.06 in account after 1 year.