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
Can you leave an explanation too?

Answer 1

A=p (1+r/k)^kn
A=400×(1+0.025÷2)^(2×1)
A=410.06