Alecia deposited $500 in a savings account at 5% compounded semiannually. What is her balance after 6 years? Please solve this question with steps.

1 answer

5% semiannually means 2.5% per compounding period

balance = 500 * [1 + (2.5%)]^(6 * 2)

b = 500 * (1.025)^12