Question

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?

Answer 1

$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