Question

The apr of deloris' savings account is 3.8%, and interest is compounded semiannually. if the principal in deloris' savings account were $13,700 for an entire year, what would be the balance of her account after all the interest is paid for the year?

a. $14,220.60
b. $13,752.11
c. $14,225.55
d. $13,752.06

Answer 1

The balance of Deloris' savings account after a year would be $14,225.55.

Step-by-step explanation:

To find the balance of Deloris' savings account after a year, we need to use the formula for compound interest: A = P(1 + r/n)^(nt).

In this case, the principal (P) is $13,700, the annual interest rate (r) is 3.8% (or 0.038 in decimal form), the number of compounding periods per year (n) is 2 (since interest is compounded semiannually), and the time period (t) is 1 year.

Plugging these values into the formula, we get: A = 13700(1 + 0.038/2)^(2*1) = $14,225.55