Question

Myrna deposits $1,000 in a savings account. The money is left on deposit for 2 years earning 4%

compounded semiannually. Calculate the account balance at the end of 2 years. Do not round
intermediate results.

Answer 1

Answer:$1000 is invested now with simple interest of 8% per year. Find the new amount after two years.

P = $1000, t = 2 years, r = 0.08.

A = 1000(1+0.08(2)) = 1000(1.16) = 1160

Explanation: