Assume abc company deposits $90,000 with first national bank in an account earning interest at 6% per annum, compounded and semi-annually. how much will the abc have in the account after five years if interest is reinvested?
a) $120,953
b) $90,000
c) $117,000
d) $120,442

A) $120,953

Step-by-step explanation:

The formula to calculate the compound amount (semi-annually):-

, where P is principal amount , r is rate of interest and n is the number of time periods.

Given : Principal amount : P= $90,000

Rate of interest : 6% per annum = 0.06 per annum

Time period : n= 5 years

Hence, the ABC will have $ 120,953 in the account after five years if interest is reinvested.

where are the options?

step-by-step explanation: