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Dudley Durite deposited $350 into a savings account that earns 6.5% interest compounded semi-annually. What amount was in his account at the end of 1-year?

1 Answer

4 votes

Answer:

$373.12

Explanation:

You want to set this up with the equation for compound interest which is
A=P(1+(r)/(n))}^(nt). A stands for amount, P stands for principle which in this case is 350, r is rate which for this one is .065, ad n is the amount of times compounded per year, and since it is compounded semi annually you do 2 for 2 times a year. Your equation based on this information should look like this:


A=350(1+(.065)/(2))}^((2)(1))

After working this out you get A = 373.12

$373.12

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