Question

Saving account has a principal of 1,800.00 it earns 6 percent interest compounded semiannually. How much is the compound interest after 1 year

Answer 1

First find the future value
A=p (1+r/k)^kt
A future value?
P principle 1800
R interest rate 0.06
K compounded semiannual 2
T time 1 year
A=1,800×(1+0.06÷2)^(2×1)
A=1,909.62

Now find the compound interest
I=A-p
I=1,909.62−1,800
I=109.62