Given:
$12,300 at 2% compounded semiannually for 4 years
So, P = 12300
r = 2% = 0.02
compounded semiannually ⇒ n = 2
Time = t = 4 years
We will find the compound interest I, we will use the following formula:
Substitute with the given values:
Rounding to the nearest cent
So, the answer will be the compound interest = $1,019.14