Can you help me solve? Sarah deposited $1,400 for one year at 10% compounded semi-annually. b. What percent interest was added each time?(The lesson is on Compound Interest)

Question

asked Dec 10, 2023 40.4k views

1 Answer

Ahmed Kesha · Answer 1 · 2023-12-16T02:02:11+0000

Answer:

Given that,

Sarah deposited $1,400 for one year at 10% compounded semi-annually.

Since it is compounded semi annually,

number of compounding periods (n) in a year is 2

interest rate(r) is 10%

we get,

Percent interest added each time is,

$(r)/(n)\%=(10)/(2)\%$
$=5\%$

Percent interest added each time is 5%.