Question

Huong invests $4,817 in a savings account

with a fixed annual interest rate of 3%
compounded 2 times per year. What will
the account balance be after 12 years?

Answer 1

Huong invests $4,817 in a savings account with a fixed annual interest rate of 3% compounded 2 times per year. This means that the interest is calculated every 6 months and added to the principal amount. The interest rate for each 6-month period is 1.5%.

After 12 years, the account balance will be:

$4,817 * (1 + 0.015)^24 = $6,245.46

The account balance will be $6,245.46 after 12 years.