Help with math problem

Question

Jane needs a short-term loan to buy a new washing machine. She needs to borrow $1500 at 20% compounded annually and plans to have it paid off in 1 year. Jane writes the formula 1500(1.2)t and finds out that this loan will cost her $1800. Which equation shows how Jane can rewrite the formula to find the annual percentage rate that would cost her the same amount if it compounded semi-annually?

A≈1500(1.2)2t

A≈1500(1.095)12t

A≈1500(1.2)12t

A≈1500(1.095)2t

Answer 1

1.095 Compounded for two periods is approximately 1.2 Note that these are exponents, not products so A = 1500*(1.095)²