Question

Steve’s savings account has a balance of $1287. after 4 years, what will the amount of interest be at 6% compounded semiannually? a. $161.53 c. $308.88 b. $337.81 d. $343.33

Answer 1

d. $343.33

Explanation:

We use the equation

A = P(1 + r)^t

P = $1287

r = 6% = 0.06

t = 4 years

Let's solve

A = 1287( 1 + 0.06)^4

A = 1287(1.06)^4

A = $1630.33

$1630.33 - $1287 = $343.33

So, the answer is D