Interest on $2,630 at 3% compounded semiannually for five years is: a) $418.96 b) $569.92 c) $414.49 d) $304.90

A)

Step-by-step explanation:

Hello, great question. These types are questions are the beginning steps for learning more advanced Algebraic Equations.

Since we are working with compound interest we can use the Exponential Growth formula to find the final price. The formula is the following,

)^(nt)

Where:

Since we are given all the information we need we can just plug in the values and solve for the total amount (y).

)^(nt)

)^(2*5)

Finally, we can see that the final price is 3,052.22 but the question wants to know how much the compounded value is, therefore we subtract the final total by the initial deposit.

3,052.22 - 2,630 = $422.22

Unfortunately, this value is not in the list of answers, you should look and make sure those values are correct.

I hope this answered your question. If you have any more questions feel free to ask away at .

addition

step-by-step explanation: