Answer:
B. $5,375.66
Explanation:
Lets use the compound interest formula provided to solve this:
P = initial balance
r = interest rate (decimal)
n = number of times compounded annually
t = time
First, change 6% into a decimal:
6% ->
-> 0.06
Since the interest is compounded semi-annually, we will use 2 for n. Lets plug in the values now:
Your answer is B. $5,375.66