Question

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)

Answer 1

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%.