Question

Question 1

For your 15th birthday, your grandma puts $100 in a savings account for you, and
tells you that you cannot take it out until your 20th birthday. If the account she has
chosen has an interest rate of 3% compounded semiannually, how much money will
you have when you turn 20?
O $109.35
O $103.00
O $122.75
1 pts
O $116.05

Answer 1

116.05

Explanation:

15 to 20 = 5 years

compound semiannually = 10 time

annual rate 3% = 1.5% for every 6 mos

so 100*(1+1.5%)^10 =116.05