For us to be able to determine Jimmy's account after 10 years, we will be using the Compounded Interest Formula:
Where,
A=final amount
P=initial principal balance
r=interest rate (in decimal)
n=number of times interest applied per time period
t=number of time periods elapsed (in years)
Given:
P = $500
r = 3% = 3 ÷ 100 = 0.03
n = compunded semi-anually = 2
t = 10 years
We get,
Therefore, the answer is letter A - $673.43