Question

Mike invests $4000 in an account that earns 3% annual interest. How much money will there be in the account after 3 years if the interest is compounded semi-annually?

Answer 1

$4786.72

Explanation:

4000(1+0.03/6)^12(3)

Use this formula to find the compounded interest after each 6 months, which would have an interest rate used to increase the amount of money.