Question
Alecia deposited $500 in a savings account at 5% compounded semiannually. What is her balance after 6 years? Please solve this question with steps.
Answers
R_scott
5% semiannually means 2.5% per compounding period
balance = 500 * [1 + (2.5%)]^(6 * 2)
b = 500 * (1.025)^12
balance = 500 * [1 + (2.5%)]^(6 * 2)
b = 500 * (1.025)^12