Question

How much will $600 amount to be if it is invested at 10% interest compounded semiannually (two times a year) for 4 years? A. $886.47 B. $952.40 C. $1063.20 D. $1168.17

Answer 1

A = P(1 + (r/n)^(nt)
A = amount after given period of time
P = principle
r = rate (change to decimal)
n = number of times compounded per year
t = number of years
A = 600(1 + (.10/2))^(2*4)
A = $866.47
LETTER A is the answer