Question

1. Michael deposited $500 in his bank account that pays 4% semi-annual compounded interest. If he does not touch the money for 5 years, how much money will be in the account?​

Answer 1

$609.50

Explanation:

A = P(1 + r/n)^nt

= 500(1 +
`(.04)/(2)`)^2(5)

= 500(1.02)¹⁰

= 500(1.218994)

= 609.497

Round answer up to $609.50