Question

Kelly plans to put her graduation money into an account and leave it there for 4 years while she goes to college. She receives $750 in graduation money that she puts it into an account that earns 4.25% interest compounded semi-annually. How much will be in Kellys account at the end of four years?

Answer 1

i = .0425/2 = .02125
n = 2(4) = 8

amount = principal(1+i)^n
= 750(1.02125)^8 = .....