i need some help

Question

Arianna deposits $500 in an account that pays 3% interest, compounded semiannually. How much is in the account at the end of two years?

Answer 1

A = 500(1 + 0.03/2)^2·2 = $530.68

Answer 2

Arianna deposits $500 in an account that pays 3% interest, compounded semiannually. How much is in the account at the end of two years?

Let's get the right formula for compounding interest semiannually.

Compound Interest

A = accrued

P = Principal

r = interest rate

n = number of times per year compounded

t = time in years

Let's set up your equation:

A = 500(1 + 0.03/2)^4

I got

A = 530.68. Is that what your calculator gives you?

Let me know if you have any questions.